Today is different. I think the number one reason is pretty obvious. We had a big Oil Turnaround in the middle of the morning, and thats primarily what turned things around, if you look at the sector. We have been so deeply over sold. I mean for days. For example, the putcall ratio at one point, thats really elevated. All sorts of sentiment indicators. Retail sentiment way oversold. We just have been waiting for days for many some kind of bounce. Oil was the catalyst there. Look at the s p. It corresponds with roughly the time that oil started moving down. Remember, we have brent exploration today. That may be adding volatility here. In terms of sectors, obviously, you have Energy Leading the rally here. Weve got almost 4 move in energy. Health care, industrials. You see Consumer Staples are lagging here. Thats on the bottom here. Obviously the defensive stocks are weaker here. Stocks blowing up this week, not surprisingly, are doing better. Freeport mcmoran turning around a little bit
Speaking of weapons of mass destruction lets address the elephant in the room at the top of the show frflt the moment we learned last night that north korea may have detonated a Hydrogen Bomb or claimed they did you knew today was going to be a difficult session. Markets like the people that trade them have always had a hard time factoring in potential nuclear catastrophes. It didnt feet great to rush in and take the other side of the trade. The combination of the unknown and inherently irrational north korean government and thermonuclear weaponry is reassuring as it gets. The stock market in korea seemed to take the whole thing in stride dropping about a percent on the news or at least the tremors before ultimately it rallied hard and finished almost unchanged. Theres no universe where we could be down more than south korea on these moves. At least no more worried than you were yesterday. Remember the North Koreans have had Nuclear Missiles for years now. They conducted the First Succ
Taking a look at the markets right now, they are getting ways down by those, the s p down by a 30 minute percent. We are definitely off of our session lows. By as much aswn 100 60 points. We down now by about 50 points. We are at session highs even though we are a negative territory. Take a look at the dow for the entire day. We can see where the right has been. At 10 00 a. M. , that is when u. S. Personal income and spending came out. We have been slowly clawing our way back, and you can see her at the noon hour we are just off our session highs. Another thing that is affecting the markets is of uti crude, as it always has been. And that is now at session lows, down by five and a quarter percent. 5. 25 . That is breaking a four day winning streak. The 10 00 a. M. Mark we did see a leg down after the u. S. Personal income came in a little bit worse than expected. Inx we are seeing movement the market caps today. It is an apple and google story, but i could be wrong. Ramy you are absolu
Not going to balance the market, we have to hit the marginal supplier, and that is north america, and we need to look for lower prices in the short run. Saudi arabia pushed opec to maintain production levels over objections. China has overtaken japan as the Worlds Largest stock market, with a market cap climbing to 4. 5 trillion. It could go higher. Meanwhile, the japanese market is down over 3 due partly to the weakening japanese yen. There is also increasing pressure on the airbag maker takada. The move comes after the u. S. Look nationwide. Five deaths are linked to the airbags. Split parliament voted to google apart, separating the Search Engine from other businesses. However, the resolution carries no legal weight. Google has been the subject of an antitrust investigation from the eu for four years. If the crowds are not as large as black friday, maybe it is because many people did their shopping online. It was a recordbreaking day for target, which had it Biggest Online day ever.
Maybe next year. A couple of breaking news stories. That will help the markets. Skye. Keep an eye on skye and bp. Saying that they are going to keep an eye, i suppose it is the sports content and its division. That is a watching brief. Barclays, however, saying they reinstated overweight position on skye. With a price target of 10 pounds and 25 pence. Air france, klm three strikes. Down 6 . What you saw was the cost of the strikes causing the third profit morning in a row. Stock down 6. 5 . Basf coming out with their news that the worlds biggest is wheremaker, 70. 70 we trade, they has signed on a deal with gas prom. To swap some of their gas trading assets. The deal is falling apart. Those are three names in stock trading. Euro. The dollar is coming off its initial highs. Eurodollar trading just under 1. 23. I caught up with one analyst. He said get ready for the bank of japan to see dollaryen somewhere around 1. 24, the area of concern would be at 1. 30. Pressedressed him, and them a