The crashing price of oil has thrown the markets into a tizzy. Like a prize fighter who has been knocked down, the market staggers around and tries to get its footing. The net result is a confused ending.
As I write 40 minutes before the close, the Industrials are up 44 and the Transports are down 20. The dollar index is down 0.18 while spot gold is selling at $1193.60. The gold miners are mixed with most of them down. I continue to look for the third phase upward explosion in this bull market, but so far Mr. Market is keeping his trend a secret.
The crashing oil price bespeaks of deflation, but if deflation is in the saddle, why is gold still holding above 1100? Japan continues to fight deflation with enormous money creation -- all to no avail. Russia’s ruble is collapsing and the price of oil is wrecking Putin’s ... Log in or subscribe to continue reading.