In my posting on Aug 15, I mentioned under "factors likely to move the market" that if oil were to plunge to $99, investors would be anything but happy.
I was really just making fun of the market; I was merely kidding.
But seems like it's really happening - market's reacting negatively to falling oil!
Actually, I'm not even sure that the 2 are correlated. Perhaps the equity market was reacting to Gustav, thinking that it will kill oil supply and drive oil back up (logical thinking). Oil traders, on the other hand, were probably less concerned about supply when demand's the spotlight. And demand for oil has dropped as the world goes through a tough time.
Anyway, I'm thrilled that FINALLY, the market is in syn with oil. Or to put it more aptly, the market's no longer affected by the intraday fluctuation of oil prices.
Which is definitely good news for me.
What seems to be moving the market for the past few sessions have been the USD, econ data (even those that the market used to brush off), the financials and housing saga, Bush smiling on TV to a cheering crowd, and an awing array of other factors - some of which you'll find out only after the close of the trading session.
What looked like a possible bullish turnaround for the market in the beginning of the week might have caused some to enter into long positions. I can't say for sure that I feel bad for them. They might have gotten themselves a really good spot from where price could blast off (Haven't looked at DOW and S&P charts, but am expecting to see some really mind boggling patterns...)
If we put aside market's knee-jerk reaction to the sudden plunge in oil, and think rationally, less costly oil is actually good for everyone immediately (so I can start driving around again!!) and most definitely in the long run, except for the oil companies of course (they are filthy rich anyway).
The world needs cheaper oil.
CHEAP OIL IS GOOD!
Is anyone even listening?........
And a strong USD is great. Why, my investment account is in USD!
That said, USD will have to start climbing slower else its exports are going to suffer. Let's face it, the other parts of the world are doing even worse than US now!
Ok, I'm starting to talk like the bulls.
I should shut up now coz the bear in me is feeling really uncomfortable talking about an imminent end to my happy bear days.
I was really just making fun of the market; I was merely kidding.
But seems like it's really happening - market's reacting negatively to falling oil!
Actually, I'm not even sure that the 2 are correlated. Perhaps the equity market was reacting to Gustav, thinking that it will kill oil supply and drive oil back up (logical thinking). Oil traders, on the other hand, were probably less concerned about supply when demand's the spotlight. And demand for oil has dropped as the world goes through a tough time.
Anyway, I'm thrilled that FINALLY, the market is in syn with oil. Or to put it more aptly, the market's no longer affected by the intraday fluctuation of oil prices.
Which is definitely good news for me.
What seems to be moving the market for the past few sessions have been the USD, econ data (even those that the market used to brush off), the financials and housing saga, Bush smiling on TV to a cheering crowd, and an awing array of other factors - some of which you'll find out only after the close of the trading session.
What looked like a possible bullish turnaround for the market in the beginning of the week might have caused some to enter into long positions. I can't say for sure that I feel bad for them. They might have gotten themselves a really good spot from where price could blast off (Haven't looked at DOW and S&P charts, but am expecting to see some really mind boggling patterns...)
If we put aside market's knee-jerk reaction to the sudden plunge in oil, and think rationally, less costly oil is actually good for everyone immediately (so I can start driving around again!!) and most definitely in the long run, except for the oil companies of course (they are filthy rich anyway).
The world needs cheaper oil.
CHEAP OIL IS GOOD!
Is anyone even listening?........
And a strong USD is great. Why, my investment account is in USD!
That said, USD will have to start climbing slower else its exports are going to suffer. Let's face it, the other parts of the world are doing even worse than US now!
Ok, I'm starting to talk like the bulls.
I should shut up now coz the bear in me is feeling really uncomfortable talking about an imminent end to my happy bear days.
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