The Dog That Didn’t Bark

The boyz pulled out all the stops today, including a spectacular VIX slam, to squeeze the shorts. This travesty of a market responded as usual. However, what is unusual and interesting is that crude oil is not participating in the bullish euphoria. At least so far today, 3pm, it has extended yesterday’s losses as OPEC jawboning has failed to generate any enthusiasm.

Inventories continue to set new records as OPEC production cuts are offset by weaker demand from a slowing economy. My suspicion is that it will be a  serious sell-off in crude that triggers the next major stock market decline.

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