Tuesday, January 12, 2016

Volatility Explosion On Deck

Oil just bounced off of $30 a barrel, down another -4%

Standard Charter is now predicting oil could fall to $10 per barrel based upon the supply/demand imbalance.

Every stock market rally falters due to falling oil, yet stock bulltards are still in massive denial about the relationship between the oil, Emerging Markets, and the Dow

This chart says that a collapse in oil will bring a collapse in stocks...

Stock market volatility (red) with oil volatility (log scale):

A fall to ~$10 per barrel would just bring oil back in line with the rest of the commodity complex which is at 1960s levels...

Energy stocks (red) are catching down to oil