Wednesday Outlook: Commodities, Global Markets

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Gold was up early only to fade somewhat toward the close as investors were seeking safety.




Gold stocks bear more watching since if stocks collapse overall so too can gold stocks.







Oil prices are doing their thing still but this article from Bloomberg was pretty shocking. Do you think it's right for MS and C to take government funds to buy and store crude oil offshore?





































Testing extremes is what this market action has been all about. Whether it’s the VIX, McClellan or record low monthly RSI readings, markets aren’t doing anything moderately. It’s a dangerous situation for investors and more like wrestling a boa constrictor.

We’re on the sidelines completely. That pretty much sums up the situation for us. Nevetheless, in this rapidly changing environment it’s hard to know what our next move will be.

Let’s see what happens.

Disclaimer: The ETF Digest has no positions.

Comments

[Jim Hawthorne:]

David! Thanks for the graphics! If a picture is worth a thousand words, you just created a monster of a tome!
Ugly? I think the word is 'Fugly'! What a nightmare!

The technicals are nothing short of staggering at the present time, and now that 'warnings season' is upon us, they will soon be rivaled by the reeking fundamentals!

Remember when we were praying for oil to sink down to $90/Bbl so the good times could get rolling again?

The violent volatility of the current trading environment is indeed like wrestling with a snake and like you, I went to cash Friday and yesterday, and will nibble at some Direxion ETF's in day trade, but very, very modestly.

There has to some fun here someplace! :)

Jan 21 10:04 AM

[Internet2k4:]

The 3X funds are fun - I like minimizing absolute exposure for a cheap ticket on the roller coaster. After pulling the trigger too soon around $100, I managed to average into FAZ at $58 these past weeks and fully unloaded it between $82 and $88 yesterday - noticing the trading-screen opportunity accidentally, on an Obama-screen afternoon.

Re C and MS, and the rest, I feel like Eddie Murphy: "I can't be mad at you!" for taking history's biggest tax refund and using it to short the world economy instead of lending it to more losers. It's been a mean old (morally hazardous) world. Now that Vice-President Caligari and his Somnambulist Commander-in-Chief are gone, who knows? Maybe the guy in the driver's seat is actually in charge.

Jan 21 10:46 AM

[corey mendel:]

Dave, great stuff as usual. Love the video! Looking forward to next weeks post.

Jan 21 03:18 PM

[BigOlDave:]

RE:

"Oil prices are doing their thing still but this article from Bloomberg was pretty shocking. Do you think it's right for MS and C to take government funds to buy and store crude oil offshore?"

Why not? It's a savvy move with artificially low oil prices, which everybody knows will correct bigtime. I trust the U.S. has onshore strategic petroleum reserve topped off by now.

And if places like Argentina and Russia keep delivering $60-70 oil and get paid $30 for it, that's not only good investing, it's the most successful geo-political conquest America could wage!

Love your analyses, David!

Dave

Jan 22 12:03 PM