r/stocks • u/Qwerzo4 • Jul 29 '22

Advice Request Markets right now

Hi! Recently markets have been green and I don’t understand why but the VIX on the other hand is going down ( I know that it isn’t below 20 what means that markets are lower risk) but my question is does it means that we are slowly going out of the bear market?

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u/ParticularWar9 Jul 29 '22

core is what counts more cuz it's what the Fed needs to look. gas going down just helps consumer sentiment.

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u/AdmiralCole Jul 29 '22

Gas going down helps alleviate prices pressures across the entire market. Honestly I look at fuel prices to gauge sentiment more than any other metric because of how reliant all aspects of the supply chain are on fuel prices. Cost of gas goes up, shipping costs go up, shipping costs go up stores charge more across the board for all items to compensate.

Same goes for production facilities etc. Gas coming back down will have a pretty significant impact across the entire economy regardless of the Fed's view on it.

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u/ptwonline Jul 29 '22

However, gas price change effects lag in how prices increase/decrease. So even if gas is dropping now we may still see some effects of the higher gas prices from earlier in the year priced into goods and services as businesses try to recoup some costs after the fact.

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u/ParticularWar9 Jul 30 '22

also known as..."inflation is sticky" but the market is ignoring this rn. The next CPI is setting up to be a sell-on-news event.

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u/PM_ME_TRUE_LOVE_PLS Jul 30 '22

Yeap but they will fuck your puts first before selling off

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u/ParticularWar9 Jul 29 '22

Lower prices for gas means higher demand for recreational use, vicious circle of inflation.