Tweets & Attack on Oil
It’s noon on Monday and I am amazed that the stock market is not down more than it is (about 160 points on the Dow). The Saudi’s had an attack on their oil fields over the weekend. Which is making oil prices rise about 20% since yesterday. But the stock markets have barely moved.
And the VIX (Volatility Index), which is usually used to gauge the amount of “fear” investors are feeling, has hardly moved.
It seems that a tweet can make the market move down quickly and violently, but an actual attack (possibly requiring military intervention) hardly moves the needle.
So as I scratch my head, hope that the “fundamentals” come back to the market and plan on keeping a close eye on the “charts”. They are backward looking, but so far, not very affected by current headlines (unless they come in the form of a tweet)!