The Great Marinator of Ice’d Cubes in Chief, Art Cashin, points to crude as being the obvious catalysts in this market and explains why stocks are so strong, in spite of the spate of poor earnings reports.
Looking forward, he thinks the fate of small cap domestic stocks hold the key to market sentiment and whether or not the BOJ can deliver on their depraved form of central banking.
Is there any truth to what Arthur is saying, or is he drinking at work?
Let’s have a look under the hood.
Here are the 1 week returns of stocks, grouped by market cap.
Over $50 bill: +0.10%
Between $10-50 bill: +0.18%
Between $5-10 bill: +0.39%
Between $1-5 bill: +0.33%
Under $1 bill: +0.20%
It looks like the sweet spot has been in market caps from $5-10 billion. But over the past month, with more data to analyze, there is a clear bias given to companies whose market caps fall under $5 billion. The highest returns could be found in market caps ranging from $1-5 billion. Within that market cap grouping, the winners are almost exclusively in basic resources.
As such, wherever oil goes, so will the market.
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“As such, wherever oil goes, so will the market.”
I feel like I’ve seen this story before
Is there any truth to what Arthur is saying, or is he drinking at work?
The answer, of course, is yes.
I will keep resetting my U-VXY
“Is there any truth to what Arthur is saying, or is he drinking at work?”
Does that have to be an either/or proposition? I can see “yes” as being a good answer.