I had no idea that the Chicago Mercantile Exchange was a public company. When they went public 2 years ago, just based on how fucked up our leader is, one could easily have predicted that commodity markets were going to have lots of activity due to rough times ahead. Sure enough, in two years the stock went from $40 to $340.

I don't know exactly how their business model works, but I don't see things in the world getting real stable anytime soon (at least not with that nutter president). CME is worth 11.71 billion, so assuming their business model is good (and based on profit per transaction or other volume based activity), I am sure there is plenty of room for growth.

I probably would not buy their stock at this point though, as I suspect the oil market will retreat a bit in coming months, and that there is a bit much momentum priced into the CME 43 P/E ratio.

NXY, a Canadian oil company, has shown weekness in 2 of the last 3 trading days, and to me that is a foward looking indicator of oil prices (although the most recent drop was in tandem with lowering oil prices).

Their recent growth was heavily driven by increasing oil prices. As NXY drops it means people are losing their confidence in the oil commodity. NXY has a beta of 0.56, but when oil sinks NXY sinks much quicker, since a large part of their future business model is heavily reliant on expensive oil prices. If oil gets too cheap there is not much margins in getting the oil out of the oil sands in Alberta.

I bet NXY is back in the 30s before the year is out, although longterm the company, from my limited understanding, is in a great market position.