The markets correlation with oil prices is astounding. 2% equity futures drop on SPX and 2.5% on NDX.
News outlets are saying it's because of trump tweets on China tariffs, but that's a stupid scapegoat.
The REAL truth is markets are on edge. When a TWEET (yo a fucking tweet, seriously???) drops the market by 2%, you have to be asking yourself some questions. Are the stock markets everything they are made out to be? Strong economy, strong growth, Goldilocks market are what the news outlets have been blasting on loudspeakers.
But the bond market is priced for a recession, and the FED doesn't know its head from its ass when it comes to the economy (waiting waaay too long to start increasing interest rates). At some point you have to realise that even though market benchmarks have technically exited the bear market helped mostly by FAANG stocks and tech, most stocks have lowkey remained in a bear market (looking at you SQUARE and a plethora of others) and the recent rally that has pumped the market is nothing more than a last-ditch bear market rally.
Beware the retribution that this correction will bring. Buy the VIX and hold onto your panties.
News outlets are saying it's because of trump tweets on China tariffs, but that's a stupid scapegoat.
The REAL truth is markets are on edge. When a TWEET (yo a fucking tweet, seriously???) drops the market by 2%, you have to be asking yourself some questions. Are the stock markets everything they are made out to be? Strong economy, strong growth, Goldilocks market are what the news outlets have been blasting on loudspeakers.
But the bond market is priced for a recession, and the FED doesn't know its head from its ass when it comes to the economy (waiting waaay too long to start increasing interest rates). At some point you have to realise that even though market benchmarks have technically exited the bear market helped mostly by FAANG stocks and tech, most stocks have lowkey remained in a bear market (looking at you SQUARE and a plethora of others) and the recent rally that has pumped the market is nothing more than a last-ditch bear market rally.
Beware the retribution that this correction will bring. Buy the VIX and hold onto your panties.
Komen:
Oil leading indicator for the market dropping almost a full week before indexes
