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Stocks Drop On Oil Dump & ECB Reality-Check
While some pointed north to the aweful events in Ottowa, it appears the bigger driver of weakness in stocks today (aside from a sudden absence of broken VIX markets, a lack of Fed Speakers, and the truth about ECB bond-buying being exposed) was the plunge in crude oil. WTI tumbled from over $83 to a low $80 handle after inventories surged more than expected and that appeared the catalyst for equities to catch down to credit weakness. Treasury yields closed the day unchanged but sold off notably in the EU session (like yesterday). The USDollar strengthened for the 2nd day in a row (now up 0.55% on the week) on EUR weakness (CAD volatile around shootings), weighing on commodities. Silver was monkey-hammered early, copper and gold slid, then oil plunged (down 2% on the week) to its lowest close in 18 months. Yesterday's big winner Trannies tumbled the most today (-2%) as stocks gave up half the week's gains today.
Stocks broadly gave back half the week's gains today...
With Trannies tumbling the most on the day...
and the roundtrip from yesterday...
The S&P failed to hold its 2013 uptrend...
The turn in oil coincided with weakness in Stocks today...
As Oil and stocks decouple...
Oil ended with its lowest close in 18 months...
The drop in stocks caught then down to credit's early weakness...
The Dollar rallied once again - led by EUR weakness. CAD was very volatile around macro data and the shootings
and USD strength weighed on all commodities...
Close up on today's action in commodities...
2nd day in a row, Treasuries sold off during the EU session... but closed unchanged on the day.
Charts: Bloomberg
Bonus Chart: What a difference a broken market makes...
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If those Fed cunts can't get off their asses and start jawboning a stronger market, I'm going to stop advocating for their deification.
What's happening with the mining stocks? They got beaten down, but never rallied with gold and now they are down yet again.
That's why shorting them is the easiest money in the market. Questions for the mining company executives,since I can't find this info on your websites:
- When you blow your bankers, do they wipe the goat shit off their dicks first, or do you have to lick it off?
- How do you get the jizz stains out of your ties (or do you swallow?)
- Your suits always appear to be in excellent condition when you appear in public - the knees don't seem to be worn out at all. Is this because the carpet in the bank executives' offices is extra thick and plush?
- Do they cut your nuts off before the financing deals, after, or as part of the actual deal finalization? Do you get them back in a little formaldehyde jar? Or does the bank keep them as a trophy?
My Tvix position only needs to go up 15x to breakeven.
The technical damage to this market is giving me a bear boner.
Technicals are everything. The market didn't dump today because of oil or Canada or anything like that. It rose up to the all important 123 day moving average then collapsed. Simple. /s
i'll try to answer; each nugget has it's own shine and shape, but each one holds on tight til
they must enter the corner office, then they walk out with a higher pitch to their voice. They bend over and take their medicine.... a good banker only has shit on his dick. most get the full treatment though. a case by case thingy.
i bought more HL and PAAS today. Naturally they tanked right after my fill
dats so dey call dat d'execyushun...
give'em a break ... their brokers are on vacation ... need to place their trades first ...
Gap fill on TF. Again the CAD movement was because of Bank of Canada news not shootings. MSM will blame the drop on shootings.Come on ZH.
GDXJ dumpfest into the close.
BLAME CANADA! BLAME CANADA!
Yep, inventories. The bigger issue, however, is whether the marginal cost of US production (the most expensive portion) is greater than the current price. Exciting times.
BINGO, the shale play is only good with oil greater than $80/barrel....
crockodile's bitchez
Nobody knows what's comin, but a whole lot of bad shit happens at oil $50
Since when is a drop in oil prices "bad" for the economy. The market should be euphoric about this. Since just about all businesses benefit from lower energy prices (except obviously the energy producers), the market should have gone crazy. What am I missing? Oh, that's right, I forgot quaint concepts like fundamentals no longer matter.
The rabbit hole is getting deeper, and weirder.
Oil is the inverse to strong dollar... goods more expensive will shit the exporting bed, cancelling out the consumer effect by a wide margin.
Apart from airplanes,drones,death and paper what exports exactly ?
about $2.3 Trillion of whatchamacallits.
WTI Crude is falling.
Brent isn't falling. Unfortunately
decreased demand (high inventories) which is bearish for oil is an indicator of decreased economic activity. Oil is a complex and fecal product though, government manipulation, dollar strenght, weather, economic and political risks.
That said oil has a fairly strong correlation with the broad market.
WTI tumbled from over $83 to a low $80 handle after inventories surged more than expected
hhmm, .... Coke, McDonalds, chain store sales weak (ISCS weekly), wholesale inventories piling up ... can't quite put my finger on it what this might mean ...
A Redepression ?
most excellent ... hope you don't mind that i'll steal it (hey, it's Amerika)
just kidding ... i'll give you a hat tip
Refined product is one of the USA's biggest exports now you phucking dope.
And that was Canada's Capital that got attacked today you ignorant phuck.
we need 1000 point drops, this little 100 point shit is crap
Perhaps - perhaps - if this truly is an a-b-c correction, and 'c' is just beginning, you may get somewhere near that number shortly.
What fun that would be!
What we TRULY need is a 10,000-point correction . . .
. . . . over about a 3-week period.
Then, a couple of nice 1000-point drops over the next 30 days after that.
That's when the slow slide to Dow 999 kicks in,
and the warbands from south of the border start swarming in, to rclaim the rest of Old Mexico.
Yeah, that's the ticket.
Here come the Judge
Time for Jack Yellen to put the boyz on the oil pump!
PPT to the rescue!
Inventories are higher because a dead economy doesn't need as much energy to function.
I keep posting this link. We're using one-third the retail gasoline of the peak. But i get dumb ass comments from the greens that it is fuel economy and electric cars. what horse shit...
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=A103600001&f=M
You're getting dumbass responses because you don't understand the data. That is retail refiner sales. The refiners have been exiting the retail gas game. Google retail gasoline sales for a better idea of what is going on.
Saying we're using one third the gasoline now as we did in 2003 is simply not the case.
He's getting dumbass comments because he and you both are dumb asses.
We have an energy production AND distribution explosion in the USA you dopes. Just look at the EIA data for diesel and gasoline exports to Mexico.
Tesoro is the name of the company in case you're wondering...but again I'm not long so you figure it out.
The numbers do not lie though. Gasoline prices 30 miles from here. Strangely I have to drive 240 miles due East to get the same price.
The USA has a debt crisis...not a production, profit or export problem.
" Oil Fundementals" don't matter unless it is convienient for the Machine.... Low oil is very convenient ( right now ), to bust Putins Bubble, to lower energy prices going into elections and shopping season.. and the big kahuuna "Disinflation Story" supports their justification for Zirp and Quince Edward V.
The Federallies are busting the oil price with fiat bazookas because they can.
So oil dumps, double bottoms (for now) at 80, market slides a bit today, but everyone is certain things are rosey again. You really think the SPX is gonna keep rallying with oil in free fall while SCREAMING Deflation? Next stop, oil 75, SPX 1750. http://www.alchemyfinancials.blogspot.com/2014/10/round-2.html
"Saudi Arabia’s Moves in the Oil Market"
http://thenewsdoctors.com/?p=231383
I wonder if this means Singapore investors are gonna pull out of their mega projects in the Bakken. Weird things afoot.
http://www.prairiebizmag.com/event/article/id/18872/
Nice OKR in the RUT.
"Stocks Pop (like they always do) at 4am, just like old faithfull and morning wood.
Gee Wally,
Operation "morning wood" keeps "markts" orderly in the face of every disaster.
Yes Beaver, that Federal wood is so hard a cat can't scratch it.