Monday Market Movement

Florida’s viral load is so great if it was a country the US would consider blocking travel there

I know we all like to pretend Covid is over but that’s the headline I woke up to, in Florida, this morning, along with these:

As Delta Variant Spreads, Florida Hospitals Race to Find Open Beds

As Florida experiences a steep rise in coronavirus cases, AdventHealth’s “mission control” staff monitor data to stay ahead of a new flood of patients.6 min read

• Schools Reopen to Mask Confusion
  

• Delta Variant Clouds Back-to-School Shopping Plans
  

• Companies Scrap Plans for Fall as Virus Cases Rise
  

And it’s true.  People are starting to talk about who died from Covid in a way that didn’t happen in the first few waves.  This is worse – it feels worse.  Even Oil Traders know it’s worse as Oil (/CL) fell to $65 this weekend, back where we were at the start of the summer.  These are demand concerns – these are lockdown concerns – and the market is still ignoring them.

Oil began falling long before the market last year as oil trader DO care about what’s happening in India and China and Africa. Oil is a truly global commodity that is actually used and produced every day so any changes in demand (or supply) quickly ripple through the price structure.  Oil can be like a thread of a spider’s web for the Global Economy, signaling us to danger as soon as it gets touched.  

Warnings only work if you heed them so I would trade very carefully at the moment and make sure you are well-hedged.  Beijing health authorities said last week that the city would cancel all large-scale exhibitions and events for the remainder of August.  China is the world’s biggest importer of oil and “while some countries seem to be…

Provided courtesy of Phil’s Stock World.