The Weekly Snapshot
Top News Headlines
- Whipsaw market in full effect. Stocks stage a bounce-back, at least temporarily. The VIX Index is still at 26.
- Crude oil up over 10% for the week; biggest weekly gain in 6 years.
- Sanders, Trump ride anti-establishment wave.
- Fed rate cut to be delayed?
- Alaska’s Mount McKinley to be renamed Denali.
Random Thought Of The Week
Is China jumping the gun, giving the US economy a rate hike before the Fed even gets in the game? Even in the face of widespread concern about global growth Treasuries spent most of last week in search of a bid. We know China and the other emerging markets are selling Treasuries to try and defend their currencies. Hell, that was the plan, the entire reason for accumulating all those reserves. I do wonder if anyone thought that plan through. A slowing US economy isn’t going to make emerging markets perform any better.
Chart Of The Week
After falling below the $40 level for the first time since 2009, crude oil bounced right back up to $45 in what was its biggest weekly gain in 6 years. The Crude oil market has fallen off a cliff since Saudi Arabia decided not to cut production, from a high of $108 in 2014 to a low of $38 in last week’s trading action. The question is…have we finally seen the bottom in oil prices, or will the unrelenting supply from the US producers and decreased demand from China put a damper on future prices?