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Starbuck Manitoba Canada | I was going to post a very similar argument the other day. The Major indices may have just started to decline, but the Russell 2000 peaked about 6 months ago. I think it would be fare to say that the governments of the world are propping up the markets, hell Japan recently announced they would put money into its own market as well as other markets around the world. Where do you think a great deal of the printed money goes? Keep the market moving forward and up and instil a sense of confidence in the public. Oil only has to drop $4.00 more to be half of what it was 6 short months ago. I think it would be safe to say that anyone connected with the oil industry is crapping in there pants. To think that the big, or small players for that matter, in North America are a resilient bunch that will tough out the storm without soon taking some drastic measures is ludicrous.
I would think that some major announcements will be coming very soon. If it were not for Christmas season upon us, we would here of layoffs already. Don't be surprised if those announcements happen in spite of the season.
With all that being said, I don't think this is the beginning of the big melt down, because of the positive effects of lower energy costs.
Note* we may be seeing the formation of the head in a head and shoulders pattern in the SP 500, and probably the Dow. If it is it projects the SP down to very strong support in the high 1500 to low 1600 range (1590 ish). | |
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The last time oil crashed
