At 1:30 CST, the market is recovering some of its losses but the markets are all still down about 1%. Oil, once again is the big story up almost $6. But, even bigger than that are the agricultural commodities. Wheat up over 7%, corn and soybeans up almost 4.5%. With central banks around the world threatening and some actually raising interest rates to stop this commodity boom, their endangering global growth and throwing us into a serious recession. The market senses that I believe and the fear is starting to pick up as I stated yesterday.
Looking at the internals, about 75% of the volume on the NYSE is down and of the 90 financial companies in the S&P 500, 92% of them are down. Glad to be short financials right now. That trade is paying off big time. On the flip side, of 37 energy companies in the S&P 500, 81% are up. My oil short is down slightly today but the financial short, and small and large cap shorts are doing very well.
I’ll be hosting The MoneyMan Report tonight from 4-6 p.m. CST on 1110 AM in Houston and Dallas/Ft. Worth or on www.bizradio.com
