Stocks seem poised to continue their negative posture as early gains have melted away with market focus continuing on the plunge in the price of crude oil. Oil had pierced the $35 per barrel level before recovering slightly and that has investors worried about the state of capital investment going into 2016, but more so, the state of the suddenly fragile junk bond market that has seem yields skyrocket and prices plunge. We will surely see the price of gas break the $2 per gallon mark nationwide and, for the long term anyway, that will be a great thing for consumer spending. But for now we have a couple of financial problems to deal with most notable being the possible Fed rate hike deemed likely by a large majority of economists. Most international markets are also feeling the pressure of plunging oil with only the Shanghai market ignoring the problem in light of positive economic news from the China economy. Expect continuing volatility as the day wears on.
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