Jan

5

After seven up opens in a row, we get a down 1%. After five years when a big rise in dollar versus yen, i.e. the yen weaker, never occurred in conjunction with a big decline in S&P, we get an instance with the yen down 2% and S&P down 1% as of 9 am. Of 26 markets open on my screen, all 26 are down. A very appropriate second trading day of the year from a very appropriate mistress.


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  1. michael bonderer on January 7, 2009 10:36 am

    So crude is in historic contango. Conventional wisdom holds that such extreme contango is a harbinger of higher crude prices, but reality is there is a ‘ton’ of above ground supply and thus the notion of further price pressure for crude. (as we have seen recently Koch has locked in this spread and chose to store their above ground supply in boats afloat at sea) Similarly a couple of years ago crude was in extreme backwardation and the conventional wisdom held that this signaled impending price weakness, though it reality there was scarce above ground supply, and as we have seen, prices moved big. Any insights?

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