How Oil And The Dollar Are Being Used To Manipulate The Market
Ahhh so many lines!
I know. So I'll keep this short. Maybe I'm wrong with my conclusions here, but the charts and facts make sense to me. I can't tell you when a crash (slash the next 'correction' to be PC) will be...but I can show you how they're engineering things in the US equity markets without QE
$DIA (to compare industrials vs. broader market a la $SPY)
$AAPL & $XOM (tech vs. energy - equity comparison)
$DX vs $CL - Inverse correlation; why? Most would say because we are oil consumers..but..the U.S. has 2x the oil reserves of the Middle East and we are trading 'futures' (sorry OPEC)(www.theatlantic.com/...ly-in-the-us/256186/)
$CL vs. $SPX - The name of the game.
Key moments:
1. QE stops the market from hitting 0.
2. QE ends
My Conclusion(s): By using their control on the oil pipeline, the powers that be are flooding the market with their excess. This has caused a massive spike in the volume of oil futures being traded. Though earning money from the sales of these futures (buy low, sell high, etc..), the drop in oil is caused the spike in the dollar it's supposed to. But the spike in the dollar is NOT sticking to the inverse relationship with the market that it's historically had. (Since when? Total coincidence...the end of QE)
The NYSE is traded..in..well..USD obviously; the price of stocks is going up because their value in $$ is increasing via the $DX spike.
How do they crash the market? Stop selling oil futures so cheaply. And what about bonds? Doesn't matter, whatever they want to really.
I know. So I'll keep this short. Maybe I'm wrong with my conclusions here, but the charts and facts make sense to me. I can't tell you when a crash (slash the next 'correction' to be PC) will be...but I can show you how they're engineering things in the US equity markets without QE
$DIA (to compare industrials vs. broader market a la $SPY)
$AAPL & $XOM (tech vs. energy - equity comparison)
$DX vs $CL - Inverse correlation; why? Most would say because we are oil consumers..but..the U.S. has 2x the oil reserves of the Middle East and we are trading 'futures' (sorry OPEC)(www.theatlantic.com/...ly-in-the-us/256186/)
$CL vs. $SPX - The name of the game.
Key moments:
1. QE stops the market from hitting 0.
2. QE ends
My Conclusion(s): By using their control on the oil pipeline, the powers that be are flooding the market with their excess. This has caused a massive spike in the volume of oil futures being traded. Though earning money from the sales of these futures (buy low, sell high, etc..), the drop in oil is caused the spike in the dollar it's supposed to. But the spike in the dollar is NOT sticking to the inverse relationship with the market that it's historically had. (Since when? Total coincidence...the end of QE)
The NYSE is traded..in..well..USD obviously; the price of stocks is going up because their value in $$ is increasing via the $DX spike.
How do they crash the market? Stop selling oil futures so cheaply. And what about bonds? Doesn't matter, whatever they want to really.