CRUDE BUSTS LOOSE; BOEING TANKS AFTER AIRLINER CRASHES IN CHINA

Tragedy in the skies, 133 people in China have perished.

A Boeing 737-800 that crashed in the Guangxi region of China was a twin-engine, single aisle aircraft. It had been flying for over six years, having been delivered to China Eastern Airlines from Boeing in 2015, according to The Associated Press.

On this news the stock is down 6%. Since it’s very early, there’s no way of knowing what happened and why. I was bearish on BA before the accident, even more so now.

Video shows passenger plane in nosedive as it crashes in southern China; 132 people were on board pic.twitter.com/v5c7ILNask

— BNO News (@BNONews) March 21, 2022

WTI is up 5.3%, alongside every other thing Russia makes, as pressure mounts on “the west” to stop all trade with Russia. You will pay more for everything and like it — Slava Ukraine.

The market should be down a lot, but it isn’t. We are seeing rotation out from tech and back into commodities, a rational trade given the circumstances. I will keep this simple: as long as supply disruptions persist and our economy is strong — commodities will continue to get bid. While the war rages and countries like Poland think about entering the war against Russia, markets will respond by applying a risk premium to anything coming from Russia — oil, gas aluminum, wheat, potash etc.

I’m long this trade, +220bps early going.