I argue in Juggling with Knives is that a period of high volatility changes how the market behaves. For example, we can expect correlations among asset classes to come together and then fall apart with increasing rapidity
I do know that markets that offer two alternatives both of which lead to lower stock prices aren’t my favorite occasions for putting money to work.
Oil prices surged on “news” that Russia and OPEC members would meet in February to coordinate a cut to oil production. Now it looks like there were never any plans for a meeting, but oil is still strongly ahead
If you want to trade on price trends along with the big boys, go right ahead. Just don’t assume that these very profitable short-term moves have anything to do with fundamental changes in these markets
Traders are selling today ahead of tomorrow’s official news on U.S. oil inventories. Advance projections say that inventories climbed another 2.75 million barrels in the last week.
Oil is down today and Brent has plunged while West Texas Intermediate has barely ticked lower on speculation that the nuclear deal between Iran and global powers could be implemented as early as Monday’s market open
Overnight the Shanghai Composite Index fell 7% before new circuit breakers halted trading on the exchange. Other global indexes followed Shanghai’s lead–without matching all the volatility seen in Shanghai.
It’s important to remember that no trend goes straight up. Today we’re seeing a continuation of profit taking in the dollar and a move up in oil prices on bets for a short term bounce
Commodity prices have decided they can’t climb until demand for oil, iron ore, copper and pretty much everything else picks up in China
