Sunday, November 15, 2015
And as for Monday markets:
Reuters - markets will puke Monday and use Paris as an excuse.
I don't doubt it.
The past 2 days' move looks brutal, $VIX has already gone +3SD, and the last time we had a +3SD VIX on a Friday night, we got a +6SD move on the Monday morning. Remember that?
Yup, that +6SD $VIX move on Monday Aug 24th coincided with a -5SD move on SPY and a -8SD move on QQQ. So it's possible we get to see some silly fireworks Monday morning.
But probably the real worry is this:
Traders with more OPM than brains are convinced the move down in oil is a harbinger of doom - they're even calling it "deflation", as if they know what that word means - and oil is already outside its Bolls. And now it's spilling over into everything else commodityish:
The $CRB is making a new low, and that will screw with a lot of people's heads.
In the long run, dropping commodity prices will be fantastic for US consumers - or, more likely, fantastic for the retail businesses that will fuck them up the ass by refusing to drop prices.
In any case, don't expect Wall Street Whitey to figure it out. He supports neo-Nazi politicians who believe in the gold standard.