Join        Login             Stock Quote

The S&P 500 And Brent Oil Are Basically The Same Market

 February 15, 2013 03:46 PM

Portraits from the Dark Period

"The price has nothing to do with a shortage of oil. There's a lot of oil on the market. It's because of speculation and OPEC cannot control speculation."  Quote by OPEC Secretary General Badri.

Some people are audible learners, some learn based on touch, some by interaction, for the visual leaners out there I provide the following work of art, which I call the "Risk-On Correlated Asset Motif" from the Dark Period by Jerauld de Speculator. 

1 – Day S&P 500 & Brent Oil Comparison

[Related -Searching For Solid Support In The Face Of Global Headwinds]

4 – Month S&P 500 & Brent Oil Comparison

6 – Month S&P 500 & Brent Oil Comparison

[Related -Long-term Relationships and Credit Scores]

9 – Month S&P 500 & Brent Oil Comparison

2 – Year S&P 500 & Brent Oil Comparison

3 – Year S&P 500 & Brent Oil Comparison

5 – Year S&P 500 & Brent Oil Comparison 

Correlated Global Markets require one thing, a whole lot of Juice!

The first thing you have to realize about markets is that they are crooked. If you believe the price of oil has anything to do with the stuff that comes out of the ground, then I have some nice beachfront property in Louisiana for you. 

It is all about the juice, whether it is 401k money coming in the beginning of each month, Central Bank injections, share buybacks, increasing leverage ratios, or currency funding the initial money has to be there in what I call the juice for markets, and I mean all markets. 

This is why before and during almost any major up move in markets traders go to the EUR/USD and USD/JPY funding crosses for the juice to propel the move. It all starts with the juice, that is what determines price in markets. 

This is why the S&P 500 has stalled for a couple days; traders are waiting for the next juice injection into markets. There would have to be some ‘crazy good' news for firms to extend their leverage ratios at this point, so they wait for the next big fed injection, major currency move, or 401k money for their next major move up in markets.

Finally, those traders who think they are trading oil, you are actually trading the S&P 500, for all intents and purposes, it is the very same liquidity fueled market.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageLong-term Relationships and Credit Scores

Unlike many commentators, I tend to think credit scores are a good read on...

article imageIn Defense Of Rolling Return Charts

Robeco’s Lukas Daalder has a bit of an issue with rolling-performance graphics. Bashing a recent chart of read on...

article imageThe S&P 500’s Worrisome Downturn In Drawdown

Last Friday I reviewed some of the bearish signals that were casting dark shadows across the US stock read on...

article imageADP: Private-Sector Employment Rises A Solid 200k In September

The pace of growth for private-sector employment picked up in September, according to this morning’s ADP read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

In Defense Of Rolling Return Charts
More Articles on: Finance , Oils/Energy

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.