Overheard on StockTwits: Crude Behavior

• justin
• September 23rd, 2009

The recent action in $AIG has spurred a debate about the underlying reality at the company.  The popular argument is short squeeze and technical traders are crowding into a fundamentally worthless stock, but Tradefast points out a fundamental argument for the recent move.

This is a great point that gets to the heart of parsing the Fed this afternoon.  It’s my belief that Bernanke after saying the recession is over, can’t talk down the economy – but can he talk it up either without alluding to a hawkish stance?

Interesting anecdote.   People are beginning to flirt again, but nobody is getting laid.

These tweets illustrate the reaction to the inventory report, showing weak demand. Weak energy demand isn’t a good sign for the economy at large and as stockvader points out – technically the charts for energy names like $USO are not looking good.  Its important to also note that oil hasn’t been rallying with all the recent dollar weakness.

Good question by resident system trader, milktrader.  I would say that if you systematically filter out trades, then its just another part of the system.  Otherwise you’re just simply creating and choosing from a universe of stocks.

The bears are looking for something, ANYTHING, that can kill the bullish sentiment in the market right now.  While I am taking a bearish stance into this Fed meeting, even a bad reaction to Fed statements alone isn’t enough to kill the bullish momentum at this point.

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