So, today is another day of normalcy, meaning the market is doing just fine with a slight decline from the recent record highs and the news is still talking about falling (no not falling yes falling … ) oil, Greece and Ukraine.
Of the three, oil is by far the most important to the market up or down in the short and long term. The other two are matters of perception, which, of course, the market pays attention in the short term. But, much like a toddler or teen, the attention paid to either is short lived. Soon, the market gets bored with stupid people killing each other and the “realpolitik” of countries. And like an easy-to-read story, we know the ending of most “news” stories. Take Greece for example.
- Germany Leaves Door Open to Deal Based on Greek Proposal
We all knew this would be (will be?) the ending – Greece gets a relaxation of austerity, but it does not get to quit it. It also cannot afford to leave the Eurozone, so …
As to the Ukraine, well, it is not really the issue at all. It is Putin and his megalomaniacal approach to the realpolitik of Europe. Like the Greece story, I believe the ending for this is known as well. Putin will push as far as he can, with whatever time he has, to gain as much territory in eastern Ukraine before he makes final deal. He will make a final deal because he is running out of time, economically speaking. His country is faltering badly and Russia has a history of dealing with this sort of stuff.
No, the real deal is oil, and, as I and many others have been saying, the fall is not over because the fundamentals are in play for the price.
- Wednesday’s API (American Petroleum Institute) report said that the U.S. crude supply increased by 14 million barrels. This was the largest increase in week to week numbers in history.
Sorry, but as market commentator, the daily drivers of the market are important, and I deal with them as pragmatically as I can. This does not mean, however, I cannot point out something of interest to trader and investors, and so here it is.
- Pinterest Said to Be Raising Funding at $11 Billion Valuation
I like Pinterest. They do an excellent job and their niche is firmly established, It might be something to watch.
Trade in the day; invest in your life …
