US markets opened down and at first glance they were going to dive further, but I suspect their was an abundance of short sellers that got squeezed sending the averages back up to mixed status. WTI crude short sellers were really squeezed at the opening bell when the premarket price was 34.55 and has short up to $35.85. The key word is volatility for the next few session I suspect; be careful.
Here is the current market situation from CNN Money
North and South American markets are lower today with shares in Brazil off the most. The Bovespa is down 0.93% while Mexico's IPC is off 0.78% and U.S.'s S&P 500 is lower by 0.24%.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
LONDON (Reuters) - Oil prices tumbled 4 percent on Monday, coming close to their 11-year low, on growing fears that the global oil glut would worsen in the months to come in a pricing war between leading OPEC and non-OPEC producers.
NEW YORK/SAN FRANCISCO (Reuters) - Once the Federal Reserve lifts interest rates from near zero, likely this week, the focus will turn to the other legacy of the crisis-era policies: the Fed's bloated balance sheet.
(Reuters) - Newell Rubbermaid Inc, the maker of Sharpie markers and Parker pens, agreed to buy diversified consumer products company Jarden Corp for $13.22 billion, adding brands such as Sunbeam kitchen appliances and Coleman outdoor gear.
BENGALURU (Reuters) - Stock markets in developed economies are expected to continue outperforming emerging markets next year, but optimism among hundreds of market strategists polled by Reuters in the past week has faded compared with just a few months ago.
MUMBAI (Reuters) - India's Mahindra group, with interests in automobiles, finance and IT services, has agreed to buy Italian car designer Pininfarina for about 33 million euros ($36 million) to boost its design capabilities.
NEW YORK (Reuters) - A weak ending to 2015 and the expectation of improving profit growth in 2016 will set the stage for a single-digit gain in U.S. stocks next year, a modest forecast at least by recent standards, according to strategists polled by Reuters.
Submitted by Jim Quinn via The Burning Platform blog,
Janet Yellen will increase interest rates for the first time in nine years on Wednesday. She isn't raising them because the economy is strengthening. The economy just happens to be weakening rapidly, as global recession takes hold. The stock market is 3% lower than it was in December 2014, and has basically done nothing since the end of QE3. Wall Street is throwing a hissy fit to try and stop Janet from boosting rates by an inconsequential .25%. Janet would prefer not to raise rates, but the credibility and reputation of her bubble blowing machine is at stake. The Fed has enriched their Wall Street benefactors over the last six years, while destroying the real economy and the middle class.
The quarter point increase will be reversed in short order as soon as we experience market collapse part two. It will be followed with negative interest rates and QE4, as these academics have only one play in their playbook - print money. They created the last financial crisis and have set the stage for the next - even bigger collapse. John Hussman explains how their zero interest rate policy has driven speculators into junk bonds as the only place to get any yield.
Over the past several years, yield-seeking investors, starved for any "pickup" in yield over Treasury securities, have piled into the junk debt and leveraged loan markets. Just as equity valuations have been driven to the second most extreme point in history (and the single most ...
Camera-on-a-stick is down 83% from its October 2014 (the end of QE3) highs (and down 75% since Jim Cramer said it was "bargain" in July). GoPro is down 33% from its IPO price... and down 16% today as more analysts realize now is the time to downgrade before it goes full Kodak.
In light of surging concerns about mutual and hedge fund fixed income (and soon other asset classes) "gating", "runs" or outright liquidation, Deutsche Bank has prepared the following infographic which summarizes the main choke points which predispose both open and closed-end funds to runs or outright shutdown.
And some DB's commentary on the difference between open-end and closed-end funds:
Differences between open-end and closed-end investment trusts
The biggest difference between open-end investment trusts and closed-end investment trusts is in whether or not assets under management can be reduced and surrendered to individual redemption requests.
For open-end investment trusts, investors buy in with new money, and fund managers use the funds to increase purchases of corporate bonds and other assets for investors. When investors surrender the funds, corporate bonds and other assets are sold to raise funds to cover the redemptions (although some funds have cash pools).
For closed-end investment trusts, a certain amount of funds are collected when trusts are established and invested from the outset. Unless there are additional offerings, redemptions, or other changes, there are no fund inflows or outflows (except dividends received, cash distributions, etc). Consequently, closed-end investment trusts can have low liquidity assets. However, they provide sales opportunities via listing at exchanges (ETFs, etc.) or setting redemption targets.
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