WTI Crude is now below $65. I attempted to catch the knife on Friday, but ended up losing a hand. I’m a bit disturbed at the implications and potential for collateral damage. High Yield? Margin Calls? What about a recognition of a potential hard-landing in China? Is the commodity glut really a supply story? Or a demand one?
I’ve cut most of my long-beta position. I might be the fearful fool, though. Maybe the “oil stimulus” story is real, but I’m skeptical for now.
Edit: I put my beta exposure back on this morning (12/1/14, 10:17AM). Markets don’t care about cracks… we’re going higher.