1) Collapsing Oil:
Oil has entered into a free fall post OPEC and is not looking to stabilize anytime soon. This has deflationary implications:
2) A Weak High Yield Market:
Collapsing oil is definitely creating trouble for high yield issuers in the Oil market. Rig counts have almost halved and the high yield ETF is at a 52 week low. While default rates are still below long term averages there could be trouble ahead:
3) Diverging Transports:
Collapsing oil should logically help the transports but this has not been the case and transports have significantly diverged from the S and P 500 with no new highs in the transports in over a year:
4) Volatility on the Up:
The Vix has also positively diverged not making new lows in each of the markets recent up moves in over a year and a half:
No comments:
Post a Comment