The big news yesterday was that markets were able to push higher in spite of the rally in oil. Of course, one data point doesn’t prove that equities and oil have decoupled, but this relationship certainly bears watching.
Anyway, on our unending quest to help you procrastinate about whatever it is you should be doing, some links:
- Mish Shedlock offers some evidence that the credit crunch is only worsening:
Businesses do not want to lend, consumers do not want to spend, financing approved projects (even large projects in supposedly “recession-proof” Las Vegas) is difficult. Unemployment is soaring, demand for credit ratings is dropping, there is no driver for jobs, the service sector is shot and that is going to put still more pressure on consumer discretionary spending and business borrowing.
The credit crunch is not only pervasive, it has now reached critical mass where it will start feeding on itself. The Fed is powerless to stop it.
Expect to see corporate bond yields soar and treasury yields to drop as the credit crunch picks up steam. Those looking for inflation can find it in their rear view mirror. [link]
- Bill is starting a series looking under the hood of historical and implied volatility. Required reading.
- The ongoing program of Socialism for the Rich is only gathering increased momentum. At this rate, by November the Bush administration will just remove the Sell buttons from all of our trading platforms. Mission Accomplished!
- We’re giving a short talk this evening (“Using Iron Condors to Profit from Fear“) online at the Commodity Trading School – 6PM PST / 9PM EST. Free registration required.