WTI crude oil (USO, quote) continues its climb higher overnight to over $104.40 a barrel before settling back under $104 handle at U.S. equities open. Crude oil has not seen $104 handle since mid-September.
The recent Emerging Market rally is built off a combination of fundamental and technical factors.
Folks, rotation is good ultimately but not for momentum stocks, and this has been going on for months, not days.
As per Merrill Lynch, you would be up 48% on the spread.
Emerging Market Funds, both dedicated and ETFs, have now strung together two consecutive weeks of inflows for the first time in 6 months.
Nasdaq BioTech Index led to the move lower for all stocks.
S&P is having its fourth worst day of the year (-1.6%), but Emerging Markets only down 40bps.
Jobless claims hit 300k this morning and set a low level not seen since May 2007, and now the 4wk moving average is 316K.
US Equity players are near as bearish as they have been in a long time.