Posted by: jhamon | October 21, 2009

MysteryHedgie: Oil Gushes Over $80, Risk Cheap…

Oil….the break above $80 has at least temporarily severed the link between strong commodities/weak US$ and rising stocks, a  very dependable correlation for most of 2009.  It could also be posited that the US$’s break through 1.50 Euro is raising concern as global bankers consider supportive action, as was the case in Brazil yesterday.   We have seen  consistent buying of protection in Airlines (rarely traded issues) and other Transport names throughout the day.   As the VIX bounces from    

hitting an intraday low of 20.10, the scratched and broken record is heard one more time before being taken off the turntable….”Risk is underpriced!”                            

Oil Gushes

Oil Gushes

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