BOB LANG: Good morning, Action Alerts Plus subscribers. It's December 5, 2022. Great to be with all of you today. It's time for a rundown. We've got a lot to cover, so let's get to it. So even after Friday's modest retreat, we saw markets are still rather overbought after the close on Friday. Oscillators are juiced up and have been for about six weeks now. That is really impressive to see though especially with a lack of a meaningful pullback that would pull the oscillators down below zero. So we have that above zero reading for, again, the better part of six weeks since about the middle part of October with seasonally strong trends right now in motion. We are also seeing sentiment moving into the Bulls column.
Strong breadth, shrinking put call ratios, and a huge drop-- fantastic drop-- in the VIX. They're all bullish. The VIX closed Friday, of course, under 20% for the first time since August. So that brings us to this morning's US services PMI data and ISM. And the PMI data for Europe came in actually just about in line, but the ISM data slightly better than expected, but some of the numbers on the ISM data came out a little bit hot on the inflation side.
Last week, stunning drop in the PMI. Chicago's biggest drop since 2020, since actually the March, April, May period of 2020. European services though, again, as I mentioned, were mostly in line this morning. Inflation may be subsiding there, and perhaps economic activity is starting to pick up. So what does that mean for the euro? It means the euro currency is starting to gain some strength at the expense of the dollar. We may see some increased economic activity picking up there from the eurozone, and especially if the China market starts to open up. That would certainly be a positive for Europe.
The euro currency once again is strengthening again today against the dollar. And that means-- I mean, economic strength for the euro, for eurozone, meaning Italy, France, Germany, Austria, and elsewhere, are showing some rather good economic strength right now. We're also keeping a close eye on China, of course. And simply put, the reopening story is-- it's been going back and forth. We've been hoping that their reopening is going to kick off some good, strong economic output for the rest of the world, but it seems like every couple of days when they expect to see things open, they go ahead and close things down. They have relaxed some of their restrictions for COVID for the citizens in China. So maybe that-- and that's driving stock prices up. So maybe that is going to be the one thing that lifts markets up and lifts China economy up out of the doldrums, which is what they've been in for the better part of 18 months.
As for energy this turn [AUDIO OUT] OPEC plus had a meeting over the weekend. And their decision was that they're going to remain status quo with the output for oil for the foreseeable future. So that is going to be bullish for oil and bullish for crude. In fact, as demand picks up over the holidays, we have cold weather, we have heating oil starting to pick up, and gasoline stocks are starting to get smaller over the holiday period. And we do get a changeover in the spring, which means that they draw down in these refineries and draw down their inventories on gasoline, which we do often see a temporary rise in gasoline prices. So that's not going to be good for the consumer, but it's certainly going to be good for these oil companies and refineries with prices going up.
But we continue to like our XLE position in the AAP portfolio. And then lastly, before we finish up here, just a quick reminder that on Wednesday is going to be our monthly meeting for monthly meeting call at high noon on Wednesday, December 7. And Chris and I and Sarah are going to be joined together at the New York Stock Exchange. We'll be there live. So make sure you send your questions in to us. We'll be looking for some of the best questions to answer.
We'll be talking about some of the performance that we've had over the past couple of months with some of the new names that we've added, some of the exciting new names like Clear Secure, Axon Enterprises, Ella Vance, Lockheed Martin. Some of these names have had tremendous runs here in this fourth quarter. With another couple of more weeks to go to the end of the year, we're looking for some of these names to do extremely well before we wind up 2022. So it's going to be a very exciting call. We're looking forward to joining with all of you guys on Wednesday. So that's going to be it. Have a great day, everyone. And we're looking forward to seeing you on Wednesday afternoon. Take care.