Thursday, June 23, 2011
Crude Plunge
Counter to the past correlation of higher crude, higher equities, we are at a price point where a sharp drop in crude oil is a boost to the US consumer and a defacto tax cut. I would not interpret the crude oil weakness as a bad thing for the market today. It could work the other way around.
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4 comments:
This is an IAE release of oil, a supply hit to the oil price rather than a demand hit... so probably will be taken well by the market ex energy
don't think this has much to do with iae. it was already smoking prior to the news. crude and other commodities are in a downtrend as world economies are slowing signficantly. long term effects are probably bullish tho with lower energy prices and ample supply
agree it was just a trigger to get all the spec longs to cave
Wow what a short squeeze!
At least we know the markets direction now...it's just a question of how much lower? Do we take out the 1250 whisper number?
The economic numbers where horrible.What happens without QE2!
Even the Fed has no idea what type of GDP growth to expect.
It's looking worse everyday.
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