Posted To: MBS Commentary
For the first time in the history of the Day Ahead, I’m referencing an oil inventory report as a solid potential market mover. This is significant, because even when the rest of the market was attributing every move in every market to the slightest change in oil prices, I advocated heavy skepticism. In fact, I still do–at least when it comes to relying on oil to explain a full day’s momentum in stocks/bonds/etc. Charts clearly show that this isn’t the case, though they do clearly confirm that SOME of the bigger moves in oil are definitely having a short term impact. If that weirdly flat bouncing of the yellow line caught your eye in the chart above, you’re not alone. It looks very much like a bounce driven by technicals and tradeflows (which would make good sense considering…(read more)
Via:: MBS Day Ahead: ADP, ISM, and Crude Oil Inventory. Wait… What?!
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