iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,428 Blog Posts

THE DESTRUCTION OF THE COMMODITY MARKET IS AT HAND

LOL @ the indices. Most stocks on my screen are down 3-5%, yet the Dow is barely changed. Despite the emotionally charged title of this post, I am trying to look at this decline in oil as something that will pass. Clearly, there has been some extensive damage in the commodity space, due to the strong dollar and good weather. Up until recently, this carnage escaped oil, thanks to the friendly cartel folks in the middle east. But now it’s all coming to a head and oil stocks are getting the business.

My raw commodity index is getting smashed to pieces. Very simply, you cannot be overweight any of these names. You can add them as part of an allocations–but that’s about it.

Some people say this is a good thing, as prices for commodities fall so do input costs. While this might’ve been true 20 years ago, this global economy is fueled on oil money. I’m afraid if that money dries up, so would liquidity.

Today is a very somber day, a day of extreme reversal. There were plenty of gains this morning and now it’s all turned to rust.

I wish I still owned my utilities.

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28 comments

  1. Zuul

    That money will have to go somewhere. It will not be sitting in cash.

    Nasdaq 100 flat on day and the indices are barely down.

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  2. matt_bear

    cheap prices at the pump mean the poor folks get raises.

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  3. BlueStar: Contrarian Investor
    BlueStar: Contrarian Investor

    Indeud

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  4. J Livermore

    Tear away jersey rip higher into the close. Anyone remember the tear away jersey?

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  5. flyaway18

    BS called it 🙂 hat tip

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  6. smartestone

    TLT really htting the bed today

    2014 has been the hardest market in years. Anything with leadership can get chopped to pieces in an instant whether it be stocks or sectors

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  7. juice

    somber day!? nonsense, son … the King lives! KING DOLLAH that is ! 😛

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  8. J Livermore

    Big fail by shorts today. It’s coming.

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  9. budh

    Oil money doesn’t dry up. It goes to WMT.

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  10. bill

    Are we going to see a big up day tomorrow? Looks lik it will be the case

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  11. it is showtime

    This is the screw-both-sides phase

    Indexes hunky-dory
    Underneath wants to go down
    But. Indexes hunky dory !

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  12. Dr. Cash and Gold

    Yinz buy and sell too fast – Impatient mutherfuckerz.

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  13. Formergeek

    Have we destroyed the Russian war chest with this dollar rally yet?

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  14. budh

    FSLR blows

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  15. Vladimir Putin

    Hey Fly, you never answered my question.
    Yesterday someone else tried to offer his services but never showed up with a CV.
    So come to me, don’t make me come to you.

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  16. Dyer440

    Commodity super cycle is dead. Chinese are restructuring their economy from industrial engine if the world to consumerism. Houston (where I live) may be the next Detroit. However, buy nat gas for the winter & long term.

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    • Vladimir Putin

      It is not dead. I plan to invade some Baltic states and then watch out what will happen to the price of oil.

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  17. Vladimir Putin

    Many people like you already cried badly here. Don’t make easy things difficult.

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