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Here Is One Place Where The Stock Market Hasn't Disconnected From Oil
Dubai... is down 23% in the last 10 days. After soaring 64% in the first half of the year, Dubai's Financial Market General Index has collapsed 33.5%...
but if it is due to correct to where oil trades, it has a long way to go still...
Maybe it disconnected a while back, when The Fed flooded the world with money, and now it's pay back time?
And in case you were wondering, from when we called the top in Dubai after a "shell" company with no current operations IPO'd and was 36x oversubscribed... that company's stock has crashed 43%...
Charts: bloomberg
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What's is in this market? IF it were doobies, then it would be kicking ass.
Annnnnd Poof.......
Puttin' the F-U-N back in FUNdamentals!
Regards,
Co0ter
I like your funnymental approach Cooter
Maybe we could supply them with a nice dollar-based bridge loan just to get them through the "tough times".
On second thought, fuck 'em.
Must admit the Tylers did nail the top-call pretty good on that one.
Send in Goldman to help them and finish them off!
Well now that look like a sexy red hot buy if I ever saw it!
Now is sexy red hot when you set your balls on fire? Tried that once, and didn't feel good. I'll stick to waxing if I have a hair problem again.
My guess, the S&P is down between 100 - 150 points by December 26. There is no way that oil and interest rates drop the way that they have and stocks hold up. Just look at the way the market is trading. Anyone long stocks without any hedges, should be very concerned. Look at the long end of the curve. Flattening is not bullish for stocks, regardless what CNBC says.
In the Bakken:
https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf
118 additional wells/fewer barrels of oil produced per day. Super.
Not quite your traditional head-and-shoulders pattern. Looks more like the hunchback of Notre Dame formation to me. Or the quasimoto if you prefer.
Either way, it's ugly.
Looks to me like it's still on the first leg down for Dubai. 2700'ish! LOL
May the force be with marka investors, they are going to need it. Face palm!
is it too late to get in on that marka deal?
I am sure things will be fine once this "glut" clears out...
/s
Couldn't have happened to a nicer group of camel jockey's. In fact i'm hoping a return to '99 prices to sort this all out.
When the oil runs out they'll be back to riding camels and living in tents.
The sand obscured skyscrapers will be curiosities for alien archaeologists.
LOL! The new "pyramids"...
minus all the energetic properties
2 things.
1. Not fair to show just this year's Dubai chart when in reality the DFM has gone up 400% but now is just around 300% in 3 years. http://www.bloomberg.com/quote/DFMGI:IND/chart
2. Surprisingly for an astute Tyler, there is no mention of the FACT that Marka shares started at a price of AED 1.00 and today are 17% up from IPO price. Had doubled to AED 2.00 and are now at AED 1.17. http://www.bloomberg.com/quote/MARKA:UH/chart
Even Facebook started at 38, went to 50, then plunged to 22, now is at 80.
Oil contributes less than 1% to GDP of Dubai. Due to liquidity provided by bonds, repayment of all moneys to Abu Dhabi, most moneys to 'restructured' entities post 2009, massive infra spending, ridiculously high popualation and tourism growth, Dubai continues to boom (with or without oil)!
The largest impact of oil price decline will be on US, Norway, Denmark, UK etc entities and hedge funds and such. As far as I know, all these countries are in EU and US continents.
2 reasons why Saudi, UAE, Kuwait, Iran, even Russia, Iraq, Libya etc will be the last ones to fall because 1) all oil wells are Govt owned and 2) the cash reserve cushion in these countries saved over the last few decades will help them stand longer while the private companies in US and EU will get annihilated. Just look at prices of 3 stocks GDP, EOX and EXXI.
You may be one of the few people who's going to get kicked off the board before I do. TOO MUCH TRUTH SUPPORTED BY FACTS AND A WELL-REASONED ARGUMENT.
Green arrow.
Somebody pulled the rug out. Down she goes
But if this is a naked short it could turn against that somebody; we still have to see where the end of this massive Oil short lies...
Smart money is now shorting the PISS out of banks that have nothing but oil/energy related loans. BOKF is your winner winner, chicken dinner. Already made a small fortune shorting OAS and WLL. Now it's time to short the banks like BOKF.
Next the bankers will try to start a war on Saudi Arabia because their price is too low....
tyler sometimes i dont konw if you try to be intentionally stupid...dubai is an oil exporter...US Europe Japan China are all oil comsumers...your oil glut is a negative for the producers, it's a godsend for the major world economies (reverse 1970 oil shock)
Dubai is not an oil exporter, Abu Dhabi is. Same country, different emirate. Not too long ago, Abu Dhabi had to step in and help Dubai restructure its debts. Dubai lives on tourism and conventions.