Will Algos Push Oil Back To $60? Morgan Stanley Begs You To “Forgive The Macros, They Know Not What They Do”
by Tyler Durden
ZeroHedge.com
04/26/2016
“Close your eyes and buy” seems to be the mantra for now. While fundamentals don’t justify a cyclical recovery in oil yet, the market continues to move higher. The primary driving force has been macro funds, index money and CTAs. Technicals and momentum have only added to it, and there is a sense from some of investors that they need to buy for fear of missing out. Similar to 2015, we see a confirmation bias where any bullish data point is embraced outages, weekly US production, etc) and bearish data points are dismissed or spun as a buying opportunity.
The Rest…HERE
