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

Markets End the Session Flaccid, Led Lower by Oil

The dynamics of this market are very clear. It cannot go up without the support of oil. When oil trades lower, so do the energy, industrial, and banking sectors.

That roughly constitutes around 50% of the market. When you take into account the earnings recession underway in tech, a sector maligned by earnings shortfalls, you get to truly understand why the market has a hard time rallying without crude.

Those sectors combined account for 70% of the market cap in this market. The only big sector left to allocate into is healthcare, which accounts for another 20%. Unfortunately, that’s been the worst performing sector of 2016.

Ergo, without the benefit of Canadian tar sands being held captive by an inferno, there’s very little reason to get excited about stocks.

Tonight, before you go to bed, pray and beg for the House of Saud to cut production. Otherwise, you and your ilk are going to be rooted and routed out of this market with ease.

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9 comments

  1. roundwego

    vix still in the gutter 🙁

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    • probucks

      only in the gutter b/c the roll is in 8 days.
      It’s still slightly up off the “retarded lows” and will most certainly spike into the 20’s before end of June.

      could be next week lol

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  2. it is showtime
    it is showtime

    Death to bankers

    J P M

    M S

    G S

    W F

    BoA

    C

    You’re not as important as you think
    You’re not near worth to the community
    What you’re personally compensated. Die

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    • just3group

      showtime….in your mind they’re all the same….”banks”?!! how many depositors does GS have? how many small biz loans are on MS’s books?!

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      • it is showtime
        it is showtime

        1. “Investors sought the safe haven of Biotech stocks today” Hopefully you see contradiction. These guys/Those guys the primary dealers responsible for that

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      • it is showtime
        it is showtime

        yes nuance was left out for effect

        2. Glass Steagall

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    • roundwego

      Bofa s trying to cleanup. They have been reducing client portfolio and did not have christmas bonus nor parties.

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  3. active shooter
    active shooter

    You forgot DB…………….Of course their death is a certainty.

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  4. zheeeem

    The oil correlation is nuts. But there it is.

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