Crude oil continues to rally higher in a move that was sparked by nothing, but has in turn sparked speculation about the Fed, China and hedge funds in trouble.
The Fed will still not have the right ammo to hike rates using their own twisted logic and are too timid to believe in the American economy.
China’s economy whether it’s really 7%, 6% or even 2% has found a floor.
Hedge funds are getting slaughtered again and might have to cover oil shorts to stay in game and ride the year-end stock rally.
Whatever the reasoning, oil acts better. But until it breaks out through $50, I see this as mostly the action of extremely fast trading bets made perhaps by computer programs.
I also like that the NASDAQ is reaching a 15 year high without the help from Amazon and GOOGL, as buyers are beginning to fan out and look for oversold stocks. Its means more risk, but potentially massive upside returns in a short period of time.