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Friday Charts: The Never-Ending Greek Tragedy, Facebook, Cheap Oil and More

It’s Friday in the Wall Street Daily Nation!

What’s the big deal? Well, this is the day each week that I skip the longwinded analysis and instead let some carefully selected graphics do the talking.

This week, I’m featuring the next act in the never-ending Greek tragedy; Facebook’s failure to launch (I told you so!); increasingly cheap oil; and the number one reason shipping stocks could be in for a major rally.

For good measure I’m also throwing in a reminder why the mobile revolution is the biggest technology transformation in history.


The Bank Run is On!

All the bailouts in the world won’t help one iota if Greece experiences a crisis of confidence in its banking system.

And guess what? A crisis is unfolding!

As Sky News’ Ed Conway reports, bank deposits in Greece keep vanishing.

Keep in mind, the chart doesn’t include the latest data. So the run on the banks is likely more severe.

If I was a betting man – and I am – I’d bet you all my chips that a Grexit (Greece’s exit from the eurozone) is coming. Care to take that bet?

Peak Oil, This!

It’s almost laughable to think four short years ago, the scaremongers had us all frightened that we were running out of oil.

As I’ve noted before, U.S. crude oil inventories keep climbing. For nine weeks in a row (and counting). Inventories haven’t been this high since 1990.

So is it any wonder that oil prices fell below $90 per barrel this week? Not hardly.

Next time you consider consulting Peak Oil theorists for a tip on where oil prices are headed, consult another crackpot, Miss Cleo, instead. Her predictions are bound to be more accurate. Seriously.

The Facebook Flop

I’ve railed against the investment merits of Facebook’s (Nasdaq: FB) IPO long before it was popular (see here, here, here, here, here, here and here). I caught considerable grief for it, too.

But forget about issuing a loud and obnoxious, “I told you so!” I’m going to bask in the sweet vindication of this stock chart.

In its first four days of trading, shares of Facebook cratered 31.2% from the opening day high. Homey don’t play overhyped IPOs!

I Just Called to Say… I Love My Mobile

Add this one to the vindication files, too.

Back on March 6, 2011, I declared, “The exploding use of mobile devices promises to be the fastest-growing, and possibly biggest technological trend ever.”

Hyperbole? Not even a smidgen.

As analyst, Chetan Sharma, shows, more people now have mobile phone subscriptions than electricity and safe drinking water. (That’s not a typo.)

Forget possibly. Mobile is, in fact, the biggest technological trend ever.

Don’t Call it a Comeback!

I’ve chronicled the zigs and zags of the Baltic Dry Index before (see here and here).

For those that don’t know, the Index tracks the cost of shipping major raw materials, the precursors of economic output. As such, it provides a measurement of the volume of global trade at the earliest possible stage.

Lately, the Baltic Dry Index has been on a tear. It’s up about 70% since bottoming out in early February.

A rebounding Baltic Dry Index has two implications.

It means the oversupply of ships that plagued the market at the end of last year is correcting itself. It also means additional economic growth looms on the horizon.

So bet on shippers and bet on economic growth. Based on the latest price action in the Baltic Dry Index, both promise to surprise to the upside in the months ahead.

That’s it for today. Before you sign off, though, let us know what you think of this weekly column – or any of our recent work at Wall Street Daily – by sending an email to feedback@wallstreetdaily.com, leaving a comment on our website, or catching us on Facebook or Google+.

Have a happy Memorial Day weekend! And go find a veteran to thank for all the freedoms we currently enjoy thanks to his or her sacrifices.

Ahead of the tape,

Louis Basenese