I would like to create a thread about today’s stock market. I use the S+P-500 as my gauge mostly because that is what our performance is compared to on C2. Hopefully this thread will continue for quit some time giving other users on C2 a platform to comment on the current situation.
I am wondering why the main stream news media continues to blame the recent stock sell off on the price of oil and its decline? I don’t believe that so it gives me the notion something is being hidden or at least not discussed. It is too obvious the decline of the price of oil is nothing but great for all areas of a global economy. So what are they not telling us and why?
Any comment or discussion on my question or any other topic related to the current stock market situation is welcomed and encouraged.
Thanks.
Like Dr. Copper, oil is often a canary in the coal mine. It can reflect weakness (namely deflation, soft demand) in the global growth story. Its ripples are being felt in the collapsing high yield and EM bond markets. There are many players in those markets with crashing holdings on their books perhaps not yet baked in. The dollars huge rally was a major catalyst.
Will this dissipate next week with the FED tweaking its language for U.S. rates going forward?
If dovish then we probably get the Santa rally and dollar takes a breather - if not then I would keep seatbelts fastened. Recent history suggests the doves will have the upper hand and soothe the panicky markets.
BTW, FED statement is 2pm EST Wedenesday.
Interesting market melt down. Seems like the S+P-500 may be low enough to bounce off of support levels. The market has had a fairly strong steady climb since the end of 2011. So what will it be? Market bounces up for awhile or does it break through support and go down further? My signal went to GLD yesterday at 10% of position and goes to 40% GLD on the open tomorrow. Anybody else here have a feeling of where stocks go in the near future?
