W.T.I HIT $41.50 ( short at $ 43.40) on its way threw $40.00 even later tonight!!
When it prints a 3 handle the talking heads on C.N.B.C who have yet to see a real crash will panic.
H.Y.B (JUNK Bond ) debt will start to deteriorate as it is highly correlate to the Oil Patch. Bank balance sheets should start to show a larger percentage of their loan book going 90 days + WRITE OFF. Especially in Europe , Alberta Canada and the Balkans.
Fed cant increase rates as it will spike DX past 97 and crack all commodity markets (except Gold) as Gold is the only Risk Off asset remaining in an era no longer anticipating a bid in the Bond Pits from the QE game.
I am a buyer of the S@ P on technical bounces only for a fast trade. (my face has been ripped off enough shorting these equities!!) I am and shall continue to be Short Oil to $38.
I am and shall continue to be long of Gold and Silver Calls options.