5.10 am
Well yesterdays rally is gone.
DOW futures -252
S&P futures -30
Nasdaq futures -72
Why?
Crude and Brent have both broken 30 bucks this morning. BHP also announced a 7.2 billion write off on their U.S. shale investments. Their dividend is now at risk. We will see more of this.
China markets are officially in a bear market (down 20%)
From Credit Suisse
“A key question is whether the extreme volatility we’ve seen across global markets will prove to be just a storm in a (China) teacup, or the early warning of a brewing Tsunami that will define market sentiment this year and beyond.”
The above thought process is what keeps me up at night. So far yesterday has proven to be a one day wonder and this market is NOT to be trusted. Many headwinds in place right now.
Long is still wrong.
Joe