Since I've been doing this blog, one phrase has continually popped nto my head as I ponder the financial and commodity markets- "What the hell is going on?"
I don't put much stock, so to speak, in day to day relationships between asset classes such as "Stocks got pounded as crude oil rallies four bucks." Or "gold went down because the dollar rallied." That is all knee-jerk stuff and primarily written because journalists have space to fill.
A friend likes to answer the question of why the market went up with "more buyers than sellers." After all, both oil and gold had been rallying for years yet stocks are still a lot higher now than they were when it all began.
Anyway, now we've got stocks breaking down as both gold and oil are falling. And guess what, the dollar is flat today and well off its highs so let's not get into the gold is the anti-dollar argument again. Wait a minute - oil is falling and airline stocks are falling too! And oil stocks are up even though the Dow is down triple digits!!!
Sing with me, you Rock of Love reality fans - what-the-hell-is-going-on?
In case you are not as well versed in pop culture as I unfortunately seem to be, that is a line from the song "Unskinny Bop" by the 80s hair band Poison, led by current reality star - said with sarcasm oozing from every pore - Bret Michaels. I guess if women want Flava Flav, Bret Michaels is an alternative. Even the Anna Nichole show made more sense then women throwing themselves at these two.
But I digress.
Summertime and the markets are crazy. Whatever you do, if you choose to trade keep it light. Volatility is here and the VIX isn't recording it. Lack of liquidity exaggerates every move and nothing trades as it is "supposed" to trade.