Let’s be clear (no Obama), stocks had to sell off sometime. If we gave back 50% of the recent move, we’d still be in good market standing. In no way is today’s 100 point drop something to fear, or even the 10% drops in commodity stocks. Those stocks are up 50% over the past 2 weeks.
But one thing is abundantly clear, for better or for worse: markets are slaves to the price of copper and crude now.
I’m sure there will come a time when this correlation eases. Hell, just 12 years ago no one gave a shit about crude. Nevertheless, if you’re wondering where stocks are heading next, look no further than those two commodities.
Non risk assets are outperforming today, measured best by XLU, TLT and FXY.
If you enjoy the content at iBankCoin, please follow us on Twitter
reboarded the ark at the perfect time yesterday afternoon, you rock fly, thanks for the reminder to “keep your head in check.”
don’t worry, there are still plenty of people telling you they’re not correlated and have nothing to do with each other.
ridiculously short sighted.
Long Live the Shanghai Copper Bubble, rofl…I mean DIE DIE DIE Shanghai Copper Bubble. It is only starting to get ugly,( if Draghi can’t save the world for a few more months).. my Bubble 101 lesson/thesis should become a lot easier on the down side. @ anjing I did your homework on another of Fly’s blogs.
@Nymph… good stuff…
Hope I got it right, looks like that was the source.
Nice turn off 11 am in the XME… looks like Goldman got to fill buy orders at lower prices…. 🙂