Briefing.com posted some commentary this afternoon that follows up on what I wrote this morning about hedge funds, commodities and oil:
13:42 So why is market not going vertical on lower oil prices?
Feedback is that new overhangs have developed since the last time oil saw $48.00. Debt downgrades at GM and F; concerns of hedge fund blow ups; IBM and WMT dropping the ball, pension liabilities at the autos & airlines; softening demand/prices for commodities (names such as XOM, DD, CAT had been drivers of the Dow last time oil reached these levels in Feb). Could we be in for a period of outperformance for the Nasdaq? Fact that the Dow is cohered to names like GM, IBM, XOM and WMT, it would seem so; unless, of course, the commodity-related stocks can regain their groove.
14:02 Weakness in Utility Group, UTIL -2.2%, being attributed to Sector Rotation out of space
Move lower in the sector occurring as some hedge funds unwind large positions to reduce exposure to commodity sectors.
Fun times!
It’s still an uptrend, right? So what’s the problem?
Hi , do you still have a link to dave landry “live presentation”
thanks
have a nice w-e
AL,
Just do a search (over in the far right column) on “dave landry”