• 3 minutes e-car sales collapse
  • 7 minutes Energy Armageddon
  • 11 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 hours America Is Exceptional in Its Political Divide
  • 1 day Cummins showcases 15L fuel-agnostic engine platform; hydrogen, diesel, biogas 16 March 2023
  • 8 days Gazprom and Rosneft super result
  • 2 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
How To Invest As This Economic Cycle Nears Its End

How To Invest As This Economic Cycle Nears Its End

The economic climate for investors…

Investors Caught Off Guard By Chengdu Covid Lockdown

Investors Caught Off Guard By Chengdu Covid Lockdown

An unexpected lockdown of China’s…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

Another Nail in the Market’s Coffin

I think it was very interesting not to see what happened today, but what didn’t. The Federal Reserve announced that it would continue its purchase of $600 billion in debt securities and keep interest rates low for the indefinite future. What did the markets do? The Dow rose by 0.07%, the S&P 500 by 0.42%, and yields on ten year Treasury bonds rose by five basis points. Everyone was expecting a bang, and got a whimper instead.

To me, the muted reaction is another nail in the coffin of the current rally in global asset prices. We could get a bump in markets on Friday when Q4, 2010 US GDP comes out better than expected, possibly as hot as 3.5%-4%. Then you get the new monthly asset reallocation on Tuesday, February 1, which will almost certainly favor paper assets over hard ones. Beyond that, I don’t see much on the horizon to keep powering prices higher for the short term. We are at the stage in this party where the waiters are piling the chairs on the tables, flickering the lights, and all of a sudden, the few remaining available women all start to look beautiful. If the S&P 500 does tack on a few dozen points in the next week, I will be inclined to double up, rather than run from the shorts that I already have.

By. Mad Hedge Fund Trader


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News