A sell off today in the US markets and oil’s pop
Chris Temple and Doc are with us for the market wrap. The topics on our mind include the sell off throughout the day in the US markets and the pop in oil. We also cover the continued decline in the US dollar… Could the dollar break below 90 on the index very soon?
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I would agree with that Silver. If we had our choice about the dollars direction then it would go down to take the pressure off this simmering pot. But I can’t think of many times the market did what I thought was good for us or anyone else.
You are right though, a high dollar is going to be the default catalyst for the Sovereigns if it cannot make its way lower bit by bit and allow a reprieve for ailing oil prices. Much of South America is on the ropes already. That includes Brazil, Venezuela and Argentina just for three major examples of troubled countries with either dollar shortages or too high debt and poor oil revenues.
Well said. I had been looking for some improvement in Argentina because of the new President. However, it looks like he may be impacted by the exposure of the Panama Papers and his connection to family wealth.
There is this supposed problem continuing in Puerto Rico as well – maybe that is behind this Fed emergency meeting on Monday.
Deutsche Bank could also be the reason along with what is happening in European banking generally.
If the USD does go down then it will see a flood of money into areas such as gold/silver and oil. Well, probably into US stocks generally as well.
The day day drupe you’re Dollar reality you will say YES ! 1 more you think i joke ! https://www.youtube.com/watch?v=hDTM7CJ3kWI
US to Cdn chart is showing a breakdown on the daily chart. Should head to around 1.25 at least.
Looks like a H&S may be in the works in CAD. If so oil rally today won’t last much longer. We can’t call this quite yet though because the chart needs a little more work to make the case that CAD is going back down.
Canadian Dollar Futures — FINVIZ.com
http://www.finviz.com/futures_charts.ashx?t=6C&p=d1
I was surprised that the US markets did not end the day stronger – perhaps that is an indicator of more weakness to come next week? UK and Europe finished strongly and Asia had been mixed.
Not convinced by the oil rally. Couldn’t get aboard it – it seemed to climb on the back of lower US rig numbers but I think that focusing on that count now ignores the fact that there is a new player in town in the name of Iran.
I keep an eye on the marine traffic in the gulf – a kind of flightradar24 for shipping – and the amount of oil tankers waiting off the coast of Iran to fill up with oil is amazing .
Al and Corey, I hope you bring Mr. Josef Schachter of Schachter Asset management. He has deep understanding of oil market. I think he is the best in oil.
It would seem to me that a concerted effort by all to take the US$ down would be beneficial to all the banks who are exposed to 3rd country debt. Perhaps all that debt borrowed in US$ was beginning to worry someone!