2 Indicators To Reenter The Market, According To Joe Terranova

On CNBC’s “Fast Money Halftime Report,” Joe Terranova said sometimes the best trade is no trade.

Terranova said he’s sitting back and looking at two indicators for him to reenter the market: oil and yields.

He sees oil as the proxy for a surge of virus cases and he sees yields as the proxy for stimulus. He said there needs to be a turn in energy and a rise in yields for him to get back into the market.

Terranova said he wouldn’t buy energy names but uses it as a measurement of potential speculative behavior. He said all he needs to see is some form of bottoming for energy.

U.S. EIA crude oil inventories for Oct. 23 showed a 4.32 million barrels build, versus the prior 1.001 million barrels prior.

Some top oil losers of the day at the time of publication were Total TOT, Halliburton HAL and China Petroleum & Chemical SNP.