Why Energy Prices Could Decide The Election & Markets w/ Mark Newton

Watch on YouTube ↗  |  May 17, 2026 at 13:00  |  19:33  |  Milk Road Daily
Speakers
Mark Newton — Managing Director and Head of Technical Strategy at Fundstrat Global Advisors

Summary

Mark Newton explains why falling oil prices are critical for markets and the election. He argues crude has peaked and expects a decline to $60, while remaining bullish on agriculture and fertilizer stocks. He also sees the MAG7 stalling after a sharp rally and expects a broadening market rotation.

  • Crude oil has peaked technically; momentum is negative and a break below $79 could lead to a quick drop to $60.
  • Energy sector is expected to underperform significantly in the short run.
  • Agriculture and fertilizer stocks (Bunge, CF Industries) are in a cyclical uptrend and buyable on dips.
  • MAG7 (MAGS) is likely to stall and undergo a 3-5% correction after an unsustainable rally.
  • Market is forward-looking and sniffing out a ceasefire deal that will lower oil prices.
  • Technology has rebounded sharply but is overbought; new positions are not favored at current levels.
  • US equities are expected to outperform the rest of the world, but no specific vehicle is cited.
  • Consumer discretionary weakness is linked to high energy costs, which lower oil could help.
Trade Ideas
Mark Newton Managing Director and Head of Technical Strategy at Fundstrat Global Advisors 8:31
MAG7 likely to stall and correct.
The MAG7 (as represented by MAGS ETF) is likely to stall in mid-May after a 14-15% rally in about five weeks. A 3-5% correction is overdue, and new positions at current levels are not attractive; buying weakness is preferred.
MAGS LOW
Mark Newton Managing Director and Head of Technical Strategy at Fundstrat Global Advisors 15:55
Crude oil peaked, decline to $60.
Crude oil has peaked technically with negative momentum, break of trend lines, and key support at $79; under that a quick move to $60 is likely. Seasonality turns negative later in the year. The market is sniffing out a ceasefire deal that will lower oil prices.
WTI HIGH
Mark Newton Managing Director and Head of Technical Strategy at Fundstrat Global Advisors 18:21
Buy Bunge and CF on dips.
Grains and fertilizer stocks are in a cyclical uptrend that should last most of the year. Any pullback over the next month is a buying opportunity in names like Bunge and CF Industries, which offer diversification and decent returns for 2026.
CF BG MED
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This Milk Road Daily video, published May 17, 2026, features Mark Newton discussing MAGS, WTI, CF, BG. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mark Newton  · Tickers: MAGS, WTI, CF, BG