The daily sector report is undergoing surgery. The layout from DJ changed, and caused my excel spreadsheet to be off. I was afraid this would happen. I've worked out a patch, but I have to re-link everything. No easy task.
5 comments:
Anonymous
said...
Wouldn't be surprised to see news coming out of Europe now about a slowdown (to talk down Euro and prop USD) - and anyways Europe always lags US by about 6 months....
Asia Bankers (other than China) seem to be beginning to catch on that their high currencies are killing their economies - will some try to devalue like Vietnam now is?
(Recall that is what set off the Asian contagion in 1997/98 when Thailand had to do the same thing)
.. And today we entered pure 'fantasyland' with GazProm calling for $250 oil.
Are they going to let the Oil market spike higher - then have the meeting with the Saudi's - and after the meeting the price falls - to show they 'have things under control'?
Problem is CFTC and DOJ say they are going to 'investigate the oil market' - but this means that Goldman and all the others have to 'unwind' all their swaps.. so the price could gyrate all over the place - with many irrational moves.
No doubt someone is going to blow up in this...
Recall about 1.5-2 years ago many firms tried to short the copper market on the LME - and went broke.
I suspect that the Investment banks (ie: Goldman) have been using swaps on Oil to offset declines in the banking sector.
Notice whenever the banks go up oil goes down (independent of the direction of the USD or Oil fundamentals)
If one was to put on their 'tinfoil hat' - I guess one could speculate that besides trading these swaps for their own accounts - they may in fact be pursuing this on behalf of overseas Middle East clients - (who by the way own large parts of the US banking sector)
In any case - any unwinding of this could be akin to the unwinding of the housing bubble - just another pyramiid of paper.
Perhaps the same crew that blew up the credit market with their financial engineering will blow up the oil market?
5 comments:
Wouldn't be surprised to see news coming out of Europe now about a slowdown (to talk down Euro and prop USD) - and anyways Europe always lags US by about 6 months....
Asia Bankers (other than China) seem to be beginning to catch on that their high currencies are killing their economies - will some try to devalue like Vietnam now is?
(Recall that is what set off the Asian contagion in 1997/98 when Thailand had to do the same thing)
.. And today we entered pure 'fantasyland' with GazProm calling for $250 oil.
nice
$250 in 2009? that does it, man...i think it's going down...
2nd
USD already gave back 38.2% of its gains right of the open...
I guess everyone will be watching now to see that the USDX does not go lower than it was prior to the 'intervention talk'
Traders are used to the FED pumping up the USD or taking down GOLD etc... usually right before some bad news...
They got burnt yesterday - but old habits die hard...
Transports getting hit today...
Are they going to let the Oil market spike higher - then have the meeting with the Saudi's - and after the meeting the price falls - to show they 'have things under control'?
Problem is CFTC and DOJ say they are going to 'investigate the oil market' - but this means that Goldman and all the others have to 'unwind' all their swaps.. so the price could gyrate all over the place - with many irrational moves.
No doubt someone is going to blow up in this...
Recall about 1.5-2 years ago many firms tried to short the copper market on the LME - and went broke.
nice
Leisa
Take a look at Stockcharts ratio
$WTIC:$BKX
This trade has been a 5 bagger since 2007
I suspect that the Investment banks (ie: Goldman) have been using swaps on Oil to offset declines in the banking sector.
Notice whenever the banks go up oil goes down (independent of the direction of the USD or Oil fundamentals)
If one was to put on their 'tinfoil hat' - I guess one could speculate that besides trading these swaps for their own accounts - they may in fact be pursuing this on behalf of overseas Middle East clients - (who by the way own large parts of the US banking sector)
In any case - any unwinding of this could be akin to the unwinding of the housing bubble - just another pyramiid of paper.
Perhaps the same crew that blew up the credit market with their financial engineering will blow up the oil market?
nice
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