Bonds Yields Plunge After May Jobs Report Disappoints

The narrative being weaved here is weaker than expected economy equates to a do nothing Fed. If the Fed isn’t going to hike, hike, hike, then the deflationary vortex may commence — sweeping into it the entire stock market.

The May jobs report missed estimates: 138K vs 185K

Futures have been halved and are barely higher.

WTI crude is sinking lower, now off by 2.2%

The euro is skyrocketing v the dollar, higher by 0.5%.

Gold reversed losses and is now +0.52%.

And, most importantly, bond yields are getting crushed — with the US 10yr down 5bps to 2.17% Because the 2yr is only down by 2bps, that means the US yield curve is flattening again, which should bode poorly for US equities, especially banks.

The US yield curve spread is only 89bps now!!!

By the looks of it, I might be reducing my equity exposure after all, in exchange for more GLD/TLT.

At least for a day, the greatest transfer of wealth from west to east the world has ever known has ceased. Futures traders, clad in their grandmother’s pajamas, are ignoring the indecorous dismantling of WTI crude, now lower by nearly 2%, and, ostensibly, bidding stocks higher off the back-hand of President Donald Trump removing America from the very unfair and evil Paris accord.

Copper is also down by more than 2%, a foreboding sign that global growth isn’t exactly steaming ahead. Nevertheless, the German DAX doesn’t seem to care, now higher by 1.6%.

NASDAQ futures are +19.

Pre-market, both RH, BOOT and ZUMZ have been obliterated, while LULU, GOOS and AVGO are enjoying the fruits of western hedonism,

Happy Friday.

We’re robber barons again. Feel free to dump medical waste into your neighbor’s fresh water stream — killing off his fish supply — drowning bitch ass seagulls with vats of WTI crude. Gone are the days of catamite led climatefags; in come the industrialists.

On the news of Trump urinating on the faces of Macron and Merkel, S&P futures are hitting record highs in the overnight session, +5.

Additionally, WTI futures are down another 0.75% — because we’re gonna drill so many god damned oil wells, we’re gonna be knee deep with the stuff — especially in the Gulf of Mexico.

Incidentally, my quantitative model has been profitable in every week since I implemented it into action. The way the market stands now, I might be forced to reduce my equity exposure in exchange for GLD/TLT — since risk off assets have outperformed stocks this week. While it’s true, stocks have traded up, so have gold and bonds.

My top performers for the week have been SIRI (+6%), VIV (+4.4%), ALGN (+3%). My overall median return is 0.7% — outpacing the SPY by 0.25%.

The top performing market cap segment in the market has been $5-10b, which means I’d have to sell all of my $10-50b names. For bulls, this is a very positive sign, as speculative fervor moves down the market cap ladder — overall gains increase.

Our planet continues to warm. Ice sheets continue to melt. The weather channel will continue to ‘scream science’, while you reprobate coalfags continue to destroy the planet and permit Germany and China to become ‘leaders’ of the free world. Plus, you’re going to let them profit from a gorillion dollar renewable fuels market.

Great job, apes.

‘This goes way beyond US politics.’

It took the CEO of Goldman Ballsachs, Lloyd Blankfein, six years to find the inspiration and the courage to speak out in the world of Twitter. He has finally done so. Joining fellow executives, and world leaders, in decrying the President’s action in removing the United States from the world saving Paris accord, Blankfein expressed his deep dismay that America will not be participating in global warming rackets.

Today's decision is a setback for the environment and for the U.S.'s leadership position in the world. #ParisAgreement

— Lloyd Blankfein (@lloydblankfein) June 1, 2017

Elon Musk manufactures electric cars. Ergo, he removed himself from associating with the President.

Am departing presidential councils. Climate change is real. Leaving Paris is not good for America or the world.

— Elon Musk (@elonmusk) June 1, 2017

GE’s Jeff Immelt is disappointed.

Disappointed with today’s decision on the Paris Agreement. Climate change is real. Industry must now lead and not depend on government.

— Jeff Immelt (@JeffImmelt) June 1, 2017

The world has changed, forever.

The view out the window since Trump pulled out of the Paris Accord pic.twitter.com/9PgMONHNeF

— ??Ramp Capital™?? (@RampCapitalLLC) June 1, 2017

UPDATE: Disney’s Bob Iger has joined Musk in quitting the Presidential Council.

Update: @Disney CEO Bob Iger joined @elonmusk in resigning from @realDonaldTrump's business advisory board. https://t.co/k9jtE6VkMQ

— Recode (@Recode) June 1, 2017

Get in here Trumpsters and explain to me how the President intends to recover from this scathing retort by France’s Macron. Not only did he chastise the Amerifats for being a nation of idle retards, hell bent on DESTROYING THE PLANET, he also invited all of your scientists to live in France — sucking off the government tit — dodging suicide attacks in Paris, whilst trying to solve the sun’s fucked up effects on the planet.

He capped off his speech by cock-smacking Trump in the face, proclaiming ‘make the planet great again.’

Truly embarrassing, really.

Climatefags just got choked the fuck out with a plume of coal dust. You know what to do with your thermometers global warming shills — stick them way up your ass and enjoy the scenery — as America mines for coal in your fucking front yard.

The President announced today that he’s pulling out of the multilateral climate treaty — due to its onerous and deleterious impositions on the American people. It’s worth noting, pulling out of the deal doesn’t equate to free license to dump medical waste into reservoirs — but releases us from a vast, global, bureaucracy of inferior sub-humans who errantly punish the greatest people to ever walk the planet, in favor of third world shit-heaps.

In other words, the government will no longer impose rules and regulations on American businesses that people in Nigeria or China are free to ignore.

#MAGA

As a result of this bold, “America first” declaration of war on science, globalist libshits have lost their mind. Former President of Mexico and professional drug smuggler, Vincente Fox, said the United States has declared war on the planet itself.

Withdrawal from #ParisAgreement, @realDonaldTrump condemns this generation and those to come. He's declaring war on the planet itself.

— Vicente Fox Quesada (@VicenteFoxQue) June 1, 2017

CNN Fake News points out that by pulling out of the deal, the United States aligns itself with only two other countries, Syria and Nicaragua.

The US joins Syria and Nicaragua as one of the three countries not in the Paris climate agreement https://t.co/hKGFr7iTWn pic.twitter.com/X9Oe9JVPHl

— CNN (@CNN) June 1, 2017

That talking point is completely meaningless, however, since most countries around the world have barely moved past the invention of the wheel. The Paris Climate Treaty was designed to punish the United States, helping to ‘equal the playing field’ by permitting third world cesspools to grow their economies, ‘by any means necessary’ while America shut down industry in the name of carbon emissions.

BEHOLD: President Donald John Trump.

Most technical analyst fags eschew mean reversion because they’re always chasing alpha. I believe I’ve demonstrated here enough times that buying dips is a highly profitable and probable method, which has convinced even the most skeptical amongst you to take this trading mode seriously.

Yesterday oil stocks in Exodus were most oversold since 2009. Today they’re up 1.5%.

The poor lads at OPEC can’t catch a break. They keep slashing production and American shalefags keep offsetting the supply dynamics through wanton drilling. Now, out of nowhere, deep water drilling costs are collapsing, which has led to a resurgence in the practice.

The old line in the sand for deep water drilling used to be $100 per barrel. Since the, austerity corrected the wayward spending habits of overzealous drillers. Now we’re looking at $40 per barrel as being the break even point.

“There is life in deep-water yet,” said Angus Rodger, director of upstream Asia-Pacific research at Wood Mackenzie in Singapore. “When oil prices fell, many projects were deferred, but the ones that were deferred first were deep-water because the overall break-evens were highest. Now in 2017, we’re seeing signs that the best ones are coming back.”

Recent projects include Kaikias in the Gulf of Mexico by Royal Dutch Shell, with a break even of below $40. BP, the fucking destroyer of the GOM, is starting a new asshole project, ironically dubbed ‘Mad Dog Phase 2’ that will cost $9b, down from $20b.

According to Transocean, a total of 8 offshore projects are set for approval over the next three years — all with breakevens below $50.

Rental rates for rigs have been halved since 2014, leading many experts to believe a bottom might be in for the sector. If so, there are a slew of deep water drillers worth looking at whose shares have been obliterated — namely RIG (-37%), HP (-32%), NBR (-47%), OAS (-36%), WLL (-41%), ESV (-35%) and BBG (-51%).

One of the arguments for Bitcoins is that there is a finite supply of 21 million. However, Bitcoin isn’t the only game in town anymore. As a point in fact, there are upwards of 730 cryptocurrencies trading on the market right now. This is literally the definition of dilution, which will eventually lead to the inexorable destruction of the fake currency market being purported as the ‘next big thing’ to hit main street.

This craze was derided and laughed at until Fred Wilson and other VCs got involved about a year and change ago.

So here are some of the larger cryptocurrencies, affixed with market caps and percentage gains over the past 24hrs. You tell me if this is normal.

Bitcoins – $40b – +10.5%
Ethereum – $21b – -1.9%
Ripple – $11.9b – +43%
NEM – $2b – +18%
Ethereum Classic – $1.6b – -0.16%
Litecoin – $1.5b – +18.5%
Dash – $1b – +11%
Monero – $650m – +12%
Stratis – $550m – -7%
Bytecoin – $440m – +11%
Stellar Lumens – $405m – +31%
Waves – +$350m – +35%

GTFO.