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Veteran Advisor

What the market could be whispering

NORMALLY ag commodities are opposite to
The stock market. I can't say for sure but oil
In the $39 range...normally commodities would
Have benefited to the "flight to safety".
Since it did not the question is, perhaps the
Strong hands are not as strong as we thought
And the pool of available cash could limited,
Perhaps things are higher leveraged than we
Had thought
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Honored Advisor

Re: What the market could be whispering

I`m only a pretend expert, but I wonder what the volume of stocks traded is compared to normal.  I would guess that so far it`s low, which would mean so far it`s just a paper loss.  Please someone correct me, but just a few shares traded at lower prices hasn`t sunk in yet ie, you only take a profit or loss when you have to sell. 

 

I think in the case of commodities like gold, some traders have it in their portfolio to sell in order to make margin calls on the stocks that they want to keep holding.  Like mortgaging properties on the Monopoly board in order to keep the properties that you have with houses and hotels.

 

I imagine for a time grains like gold might move down with stocks, being sacfriced in order to hold on to equities that they feel is more desirable.   But it`s funny looking at a Dow chart..they talk about "V-bottoms", it doesn`t even make a "V" it`s more of a straight up and down "I"  Smiley Very Happy

 

But who knows the real value of stocks anymore?   Here`s a Santelli rant.

 

http://video.cnbc.com/gallery/?video=3000410189

 

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