It's obvious you are new to this. edit: I'm actually shocked by the replies in this thread. The dollar is getting stronger, hence other things are dropping.
I'm not new to "this" and it's a valid question. Economic growth can signal more demand, not less. Sure that is on it's face simplistic, but so are most of the day to day macro explanations for market activity. I don't even necessarily completely subscribe to it (the premise) entirely, I offered it as an item of discussion. There are surely other good explanations for the move, but it doesn't make this question irrelevant.
No, there aren't. There is a single reason for the commodity move the past 2 weeks: the dollar is firming.
yeah nazzdack and stocks aren't driven by massive speculation? like amzn at a 80 p/e. what about the literally 1000's of co's stocks up 3-20 times since march. nothing to see here move on. the whole world is one huge bubble.
that's just one brand of conventionall wisdom and it's contrarian to another brand, namely that capital flows into dollars are indicative of a flight to safety, and weakening dollar is a sign of capital flow from dollars into other assets suggest risk appetite. Now you have dollar appreciation and claims of growth but a drop in demand and price of oil.
Ocean freighters are dropping prices sharply for Pacific containers into the USA. Seems that there are too many empty containers sitting in China that went unused for the holiday season. Consumer economic activity is very slow.
99% of people are now driving electric cars, that's why. NOT! I agree that the economy is somewhat better, the dollar is somewhat stronger, and some speculators have moved out of oil. If the economy got strong for a while, oil would probably head back up IMO. JJacksET4
http://www.marketoracle.co.uk/Article15674.html Read the above link that was sent to me by friend. Oil is pulling back right now based on the strong dollar. There is very little demand in the "Machines" of the world economies as of yet. Just look at Germany's new revision and Japan's. Oil is a hedge for inflation, a weak dollar. Oil also needed to pull back from the 79/80 levels for a healthy correction. Oil is being used by many countries as a hedge against the PRINTING OF MONEY BY THE FOOL IN OFFICE. The fact that OBAMA wants to print more, and he will, indicates that oil should stay around these levels as an average over the next year or so. Unless we get some crazy data showing the Word in a true recovery, not just some bullshit government numbers "Gents, your 60 days to late, the Depression has ended" smoke screen, then oil may even pull back further. Reality is looking right at us and its amazing to see how many fools look past reality and into "HOPE". HOPE is here people............lol...... Our economy is far from better. It has just taken a breather from slipping away further. The STOCK MARKET is not a indication of a "Change" in the economies...its a manipulated fed tool, and gov tool to try and keep pension funds from crashing. Its a fucking smoke screen and the smart money is not near the STOCK MARKET, let alone fooled byt the Talk of the "Dreamers and Positive News junkies." 2nd and 3rd quarter of 2010 is going to be hell and will wake the sleeping fools...hopefully.