I agree with your last statement but zero and negative rates do take it's toll on economies eventually. There is nothing gained from saving which discourages seniors and savers from spending, the capitalistic structure does not work for an economy, lending is not as profitable, it forces dollars into riskier investments and we all know how that ends eventually, sooner or later bubbles form and they almost always pop....etc., etc. Like I said this can go on for awhile but sooner or later it ends ugly and we all better be good market timers when it does.
Agree but it can continue for some time for sure. World Feds are in overdrive especially Draghi. For me Yellen has no intention of ever raising rates and has used every excuse not to do so. I have been saying that she has no clue on how to get out of the box they are in. The Fed had chances to raise over the past few years when GDP was better and it was there for the taking. She makes Bernanke look like a Hawk.
Do not fear the TV talking heads say earnings will accelerate in the back half of the year. Sorry I do not buy it based on growth here and abroad along with wages going nowhere. What I do believe in is the world Fed's sponsored gains in markets.
$10 is a stretch I think but it has retraced low $12 a couple of times. I do think there is plenty of oil and many disruptions are coming back on line along with a slow gain in rigs. If we get a strong jobs number tomorrow it could bolster the dollar and put the Fed back in the game. Both could be bearish for oil but I did hear Yellen a few weeks ago when questioned if lower energy prices were good for the economy she answered the Senator by saying NO. She wants higher prices.
I never saw it trade like this especially in a down market. It has always failed around $4 but bids keep coming in like there is a deal coming or something.
is a little late to the party but is actually keeping MRO's shares higher in this oil plunge today. If not for this upgrade I think we would be seeing the low $14's. Other oil stocks are down much more in comparison.
After the oil inventory numbers this morning that were a much smaller draw down that the API had last night oil has collapsed and has breached the key $46 level thus the markets follow. If we get a strong jobs number tomorrow the markets may drop more with the Fed possibly back in the game along with a stronger dollar hitting oil and potential earnings. It's a lot of "ifs" but could happen. MU rode the coat tails of WDC early but has given back a decent chunk of it now but still has a nice gain at this moment.
That was a key level for traders but let's see if it can regain that level by the close. Traders may be looking ahead to a possible stronger jobs number and a possible stronger dollar.
This API seems to have an agenda. If we get a good jobs number tomorrow we get the Fed back in play along with a stronger dollar. There is plenty of oil around, disruptions are slowly easing and producers are bringing back rigs slowly. I see lower prices in the future despite analysts tripping over to raise targets. I hear India is the new China that's the latest talk since China is no longer like the China from the past. India still has problems keeping the lights on....that's funny.
What's the problem? Could it be a possible a bias for higher prices? I guess we need to take their numbers with a grain of salt once again. Peak driving season is almost gone, gas inventories are building, Libya is still a disruption for now to the tune of about 1 million barrels, a good jobs number tomorrow could strengthen the dollar and analysts are tripping over each other to raise targets on oil and individual stocks . These markets are contrarian markets that try to inflict max pain to larger number of people and my guess is that prices will be lower in the back half of 2016 and we will still have plenty of oil in storage and around the globe. After today's numbers oil has flipped almost 3% now.
I watch my screen all day and more and more each day it's all machine driven. Many daily moves in markets and individual stocks make little sense and the bottom line is everything is now tied to the movement in oil and that's it. It has become so obvious since all these exchanges are no longer "not for profit" they will do anything to increase volumes including allowing high speed traders to rent spaces next door to the exchanges so as to receive that mila-second advantage. Today markets reversed because oil reversed from 2% down to almost 2% up by it's close and now the Fed minutes basically saying buy anything we have your back. My only hope is that on Friday we have a jobs number off the charts and the rate drops then the Fed will be boxed into a smaller corner. This experiment by Feds around the world is just not working it helps only a few and hurts many especially seniors and savers. Party On With Yellen!......PS: one thing the Fed is not helping is MU.
for disappointing once again. These execs have truly blown it with their poor execution and over spending on cap ex for what can now be described as technology that has slow end demand. If markets keep correcting their will be a $10+ in front of MU's share price. Once again they should have at least entertained the $22 takeout and let the regulators figure it out.
Today's move is more about the Regeneron Sanofi potential deal. I just have a feeling you may see a reversal at some point soon. There has been almost no consolidation here but like you said this is still kind of a momentum market not what it used to be but still some signs of it. Oil still moves the overall market in general.
Says back to $12 based on MRO's chart I think maybe because of oil we now are hearing that there is plenty of oil around the globe. I saw Dennis Gartman last night talking the same scenario. Kilduff was on this morning saying the $46 level is crucial to hold. I guess we will see and with the anemic growth around the world and peak driving season coming to an end it will get interesting. Rig counts have been going up each week and that cannot help. The crazy currency moves are also playing games with oil prices it seems it's all about the traders making money and not reality these days.