Cramer and Faber were discussing this topic today (by the way, this is my favorite CNBC show of the day, a clownless Cramer and sharp Faber) and I agree 100%. The market can get great earnings reports from leading companies, oversold market conditions can persist, and pretty good economic data could be released– and it would mean nothing, unless the Fed, China and Oil cooperate with the long thesis.
In order for this market to rally and hold its gains, we need the Fed to back off, China to stabilize and oil needs to go up. Forget about oil stabilizing. That’s horseshit. It needs to trade up to $40-$50 asap.
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Managed money shorts highest on record this month [going back to 2006] according to CFTC.
$40-$50 WTI is easy if only the Fed talks the dollar down a couple %.
Translation: $US must weaken considerably and ASAP..