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
23,474 Blog Posts

Oil Rises Like a Bat Out From Hell; Stocks Slavishly Follows

Brent crude reversed losses and has since traded appreciably higher. The net result of poor inventory numbers was a short squeeze. As such, crude traded up and dragged the market with it.

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The relationship between crude, the Nasdaq, and finally the all important risk assets, such as FCX’s stock price, demands to be noticed. They are one in the same, a phalanx trotting along the same road, but at different speeds.

All that said, breadth is still dreadful, TLT is still up, and gold is still pressing higher.

I’m very pleased to see stocks halve losses and people get another chance to sell and to buy some TLT. After all, I still have some SPY exposure and I’d be bereft of decency if I were to root on for the capitulation of my neighbor.

But this isn’t over yet. Stocks are slavishly following crude for a reason, not by chance. Back in 2008, stocks followed banks down and up, like a dog shadowing its owner. The same corollary is taking place now with energy related stocks, the underlying commodity and lastly the SPY.

A gathering storm is coming.

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13 comments

  1. vandamme

    Nonsense. CBs are gearing up for more cocaine and the markets know it.

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    • infinitezuul

      Maybe, but in any case crude has bottomed.

      With any luck crude squeezes back into the $45-50 zone and hangs out there long enough for people to start bidding the sh*t out of oil/gas bonds again, improving bank balance sheets and dousing bears with gasoline.

      A move to $45 would be a purely technical move and wouldn’t need to be supported by fundamentals at all, but it surely would calm some nerves.

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  2. frog

    Could be, Vandamme. If the market is not even affected by the FOMC Devil Dogs today, something is up.

    I told you folks oil was bottoming. I still think so.

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    • zerosum

      Maybe, but I don’t think $1.50-2.00 a day swings are indicative of a bottom.

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    • it is showtime

      Bottom doesnt matter, Statements/supply/production still clearly not changing course, Damage done anyway

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  3. superpositron

    Maybe we climb the wall of worry into April.

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  4. blahblahblah

    i like storms

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  5. gorby

    Looking for a guy I knew
    2007ish. Wrote a blog ,used salty language,
    made lots of dough all the while keeping
    me in stitches.

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  6. carolina

    forewarned is forearmed: ISM has decoupled from the crude

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  7. og

    FCX is a crazy bitch.

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  8. traderconfessions

    Market is fit to day trade and that’s it. Thank you AMZN for today’s performance. Maybe skill.. perhaps luck..either way is fine.

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  9. anjing bau

    and gold is still pressing higher.

    30.00 bucks off the highs….

    The open is for retail to panic in or out…the middle session is for the lunatics… the close is where the pros ride on

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  10. t.c.

    who’s this dirty red coat on the tevee.. Wilford?

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