william the wie
Gold Member
- Nov 18, 2009
- 16,667
- 2,402
- 280
A really strange read. Apparently too many people read and heeded the very real bad news about current markets. And that news is very bad indeed:
We are swimming in oil and gas. Many companies are cutting their exploration and capital budgets again and this time by more than half. Still many producers can minimize losses by shipping oil or Natural gas even at current prices.
Result
With overleveraged companies going belly up bond holders become stockholders in companies with much reduced costs. Pipeline companies are not precisely being bribed to build in order to reduce shipping costs for cash-strapped states in the oil patch but it is a fine line. Pipeline companies and states make their revenues from volume of oil shipped far more than from the price per barrel.
The stock market is overpriced and it has narrow breadth that is worse than 2000 before the crash.
Result
The S&P 1500, a broader index than the 500, has rising short interest and the put/call ratio is headed in that direction. That means shares will be going up. It means that because the shorts pay dividends and margin interest on the shares they don't own.
This is kind of strange, opinions?
We are swimming in oil and gas. Many companies are cutting their exploration and capital budgets again and this time by more than half. Still many producers can minimize losses by shipping oil or Natural gas even at current prices.
Result
With overleveraged companies going belly up bond holders become stockholders in companies with much reduced costs. Pipeline companies are not precisely being bribed to build in order to reduce shipping costs for cash-strapped states in the oil patch but it is a fine line. Pipeline companies and states make their revenues from volume of oil shipped far more than from the price per barrel.
The stock market is overpriced and it has narrow breadth that is worse than 2000 before the crash.
Result
The S&P 1500, a broader index than the 500, has rising short interest and the put/call ratio is headed in that direction. That means shares will be going up. It means that because the shorts pay dividends and margin interest on the shares they don't own.
This is kind of strange, opinions?