It took the market exactly ONE trading day to catch on to our contrarian minded (and thoughtful) opinion of Europe’s bailout plan – that is, that the plan is a complete joke, and is nothing more than merely kicking the can down the road.
Stocks and oil both dropped today after starting the day up modestly. If that’s it for the market’s oversold bounce, it was a pretty pathetic showing!
Last night we were treated to a guest comment from expert trader Rob Eberenz of Diamond Slice (highly recommended his blog BTW) as a follow up to our crude oil outlook:
Much appreciated hat tip there Brett… Indeed, we are planning to add to our short oil position this week as short term consolidation on the $1Trillion EU Purchase Fund lifts the WTI price per barrel of Crude towards $80. If the price hits $80 we’re going to go heavy short crude oil. The details of the EU purchase plan need to be revealed, but the long and short of it is that Germany and France are bailing out the PIIGS. I think the “for better and for worse” of this union has now been consecrated.
Today’s “sorry ass” performance by crude oil did not approach the $80 that Rob was licking his chops to short the goo at.
Peak oil THIS – crude is running on fumes!
With Chinese stocks quietly entering bear market territory (well below their 200 day moving average), one would expect crude to follow.
Chinese stocks quietly peaked last August – amazingly, we hear very little about this.
Which, up until last week, left US stocks as the sole market still partying like it was 1999. It looks like the clock may have finally struck midnight on the bear market rally.