Friday, February 12, 2016

All Shorts Must Cover Prior To Collapse

Wall Street is covering ahead of the long weekend, because option decay (theta) accelerates over long weekends. They don't want to take a hit to the P&L, and anyways it's "other peoples' money"... 

ZH: Feb. 12, 2016
Biggest % Oil Rally Since 2009

Oil volatility just closed at the high of the week (Today's close):

Here is the volume from the oil ETF overlaid with End of Day WTI prices. Intra-day, WTI bounced from $26 yesterday to $29 today.

Presenting the oil rally of the decade:

"Is this a problem?"
Here are Energy stocks as a ratio of oil:

Here is Exxon as ratio of Energy stocks: