Bad news from bank earnings coupled with the shocking announcement that Switzerland has given up pegging the Franc to the Euro were to blame for the volatility.
However, there was one clear winner from the Swiss news as gold took off big time nearing a major breakout through the top of the trading channel.
I mentioned at the start of 2015 that I was looking for a bounce in gold this year, perhaps to $1,400 or higher. With the European Central Bank (ECB) moments away from triggering more money printing, gold may finally be ready to shine (no pun intended).
Money Printing Around the World
Once the ECB joins the game and Japan tries even more tricks, I do not see the U.S. dollar pulling back; however, some think it could spark the stock market.
If it were not for the volatile nature of the collapse, many would be saying oil has hit a bottom, but the last couple of days look like a classic reversal. Tuesday afternoon, crude oil prices flirted with $44 a barrel, making a series of higher highs and higher lows.
While Wall Street has ulterior motives for rooting for a bounce in crude oil, there are potential benefits for business that could have a greater impact on portfolios than the oil stocks rebounding.
I think businesses and consumers alike will begin to reflect cost savings from lower crude oil with the former hiring or investing.