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
23,431 Blog Posts

Markets Recover, Oil Surges, Dollar Flops, The Country is Crazy

Once the war starts with Russia, crude supplies will be reduced. Ergo, traders are getting ahead of that event and buying up WTI, currently higher by 1.6%.

As the news flow paces frantically, markets are relatively calm. It’s haunting, really. The Dow is +15 and the Nasdaq +11. The dollar is off by 0.7%, a notable decline, although benign.

I’m up 0.2% for the day, and even bigger gains can be found in the beaten down commodity sector.

To be honest, there’s no logic or edict that could be followed to game the tape, except the following.

1. Retail is dead, dead, dead, but no one cares.
2. Large cap tech outshines all, in spite of the expensive nature of their prices.
3. Mean reversion is playing an important role in determining swing trades in the commodity sector.

Also, and most inconspicuously, Chinese stocks are crushing all sectors this year. I’m probably the only person in the world to quarantine all Chinese stocks into one group dubbed ‘Chinese Burritos.’ Analyzing those stocks with market caps above $1b netted a surprising result. The median return for the 42 companies in the group is +35% for the year. That’s an outrageous return, one that is rarely discussed anywhere in the media.

Trump is truly a great friend to silicon valley and China.

^^^ That my friends is the definition of a Costanza trade. Here is a refresher for the uninitiated.

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7 comments

  1. it is showtime

    “Valuations are worrisome”

    And

    “Complacency is worrisome”

    Oh but we’re just gonna move it higher still

    (Right. Sure. Riiiiiiiiiiiiiiight.)

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  2. oilerua

    I guess Market fed ( policy ) and economy is much stronger then politics nowadays .
    did I tell you that a was with russia is never happening .

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    • oilerua

      a war with Russia is not possible .any Usa casualty for any unfriendly fire will be met with deletion of the enemy , as military power and tech is much superior ..that’s the reason china india etc are gearing up the military sector .. in the meantime Usa/Nasa/Darpa have the next era military production/weapons at fingers…

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  3. Cricket

    Julian Assange @JulianAssange #WhiteRabbit: “Contacted Trump Jr this morning on why he should publish his emails (i.e with us). Two hours later, does it himself”

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  4. ironbird

    Yeah. Just need the tape to finally go balls out one way or the other. Just like the propaganda flow. Long hot ape shit crazy Summer.

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  5. joyous__ending

    >Chinese stocks are crushing all sectors this year.

    Yes, NTES and MOMO are definitely opportunities on pullbacks.

    The US still needs a good 5%-10% autumn pullback to reset this thing to go in big for a nice ride to 2018.

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