OIL IS BEING DISMANTLED RIGHT NOW — CRUSHED AFTER LARGER THAN EXPECTED INVENTORY BUILD

On the heels of disappointing inventory data by the EIA, showing a build of 3.3m barrels of oil and gasoline, crude is being destroyed — now off by more than 4%.

The cynic in me says this has nothing to do with inventories, more with punishing the evil bastards in Qatar/Iran. There are happenings ongoing in the middled east, with all sort of wanton depravity taking place. We only glean into the window for a moment or two before the shutters are slammed on our long noses.

That being said, this is an abomination for stocks and will bleed into the indices.

Well, let me rephrase that. Under normal circumstances, a 4% pullback in crude, in a heavily indebted sector like oil, would have a deleterious affect on stocks. But since stocks no longer correlate to reason or economics, they’ll likely trade up a bit on the news. Crude stocks will continue to be punished. Debt to equity levels will soar. Oil credit will get smashed. But the indices will trade up, because AAPL, AMZN, NFLX, GOOGL, MSFT, FB.

The evil state of Qatar must be stopped, according to Saudi Arabia, UAE and other gulf states. In spite of the fact that CNN has learned that Russian hackers were responsible for the Qatar misunderstanding, the government of UAE is offering a free 15 years in prison for anyone who dares to sympathize with the bastard Qataris.

According to Reuters, the UAE Minister State of Affairs, Anwar Gargash, said his country would make ‘ironclad commitments’ to assuage people against funding terorrists.

“Strict and firm action will be taken against anyone who shows sympathy or any form of bias towards Qatar, or against anyone who objects to the position of the United Arab Emirates, whether it be through the means of social media, or any type of written, visual or verbal form,” Gulf News quoted UAE Attorney-General Hamad Saif al-Shamsi as saying.

In addition to jail, offenders will be fined a minimum of 500,000 dirhams ($136k).

Gargash hinted at further escalation, saying “You cannot rule out further measures. We hope that cooler heads will prevail, that wiser heads will prevail and we will not get to that.”

The Qataris are, obviously, saying they’re innocent, offering olive branches to sit down and discuss things like rational savages.

“We are willing to sit and talk,” Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman al-Thani told CNN late on Tuesday. He said his country was “protecting the world from potential terrorists”.

Do any of you exclusively trade ETFs? I know a lot of advisors who have monkey brains and can only trade ETFs, scared of non-systematic risk — unable to choose wisely. So they simply raise new money and plop it into a basket of ETFs, collect fees, and spend their summers near the ocean reading books.

When I first started in the business, during the late 90s, mutual funds were the rage. Brokers would wade into B shares, collect enormous fees, and simply job in. Nowadays, fees are lower, products are deeper, but the monkey brains are the same.

Here are the top performing ETFs for 2017, with an average daily trading volume of 10m+.

XIV +68%
QLD +44%
QQQ +20%
EEM +19%
SSO +18%
FXI +17%
EFA +15.5%
VWO +15%
GDX +14%
GLD +12%
EWJ +12%

What a happy world we live in.

Former Director of National Intelligence under President Obama, James Clapper, in a speech to an audience filled with kangaroos, said the President’s actions with regards to Russia paled in comparison to what Nixon did during Watergate.

“I think (if) you compare the two that Watergate pales really in my view compared to what we’re confronting now.”

Clapper went on to lament about the firing of incompetent James Comey, describing him as a ‘personal friend and a personal hero of mine.’

He besmirched the President in front of a foreign audience, saying Trump’s sharing of information with evil Russian diplomats reflected ‘either ignorance or disrespect and either is very problematic.’

“I am very concerned about the assault on our institutions coming from both an external source — read Russia — and an internal source — the president himself,” Clapper said

Ex-DNI Clapper: Watergate pales compared to what we’re confronting now pic.twitter.com/pGc6N1dcK3

— Bradd Jaffy (@BraddJaffy) June 7, 2017

In light of last night’s terrorist attacks in Iran, European stocks are very strong. After all, war is good business. I can’t recall a more docile market, ever. We just seem to be in stuck in the haze of low volatility and nothing can wake us up.

In the meantime, the mean reversion intelligence in Exodus flagged an oversold signal for JJC (copper) yesterday. This is a rare event. The last time it was flagged oversold was on 2/11/16, a bottom for the ETF.

The only gentlemanly way to play it is to buy FCX, which is technically strong now. That’s an odd juxtaposition.

Over in the currency world, the dollar is raging higher v the euro, higher by 0.51%. This has produced a headwind for commodities, but it might be short lived.

NASDAQ futures are +11. Expect a little more of the same — low beta market, high beta world.

Rep. Al Green called for impeachment a few weeks ago, most likely to distract people from the fact that he’s an actual werewolf making believe to be human, representing the good people of Texas.

Rep. Green, actual werewolf

In a statement out tonight, Rep. Green said he was drafting up papers of impeachment for President Trump — due to his obstructionist ways with regards to the non-existent Russian meddling into John Podesta’s email box. God hopes Rep. Green can deliver the papers without first bearing witness to a full moon and subsequently eating them.

“The facts are simple and indisputable. The President fired the FBI Director because the Director was investigating the President’s campaign connections to Russian interference in the Presidential Election,” Green said Tuesday evening in a statement. “This is obstruction of justice.”

Analysis via The Hill:

The articles have little chance of seeing the light of day in a House chamber controlled by Republicans, who have rallied behind Trump amid multiple investigations into ties between Russia and members of the president’s inner circle. But Green’s gambit highlights the growing apprehension many Democrats have towards the president, and it’s sure to energize a liberal base that’s sounded the impeachment alarm with increasing volume as the Russia saga has evolved.

Great, more nothing.

You’ve got to be a complete imbecile to believe in these Russian fairytales. How pervasive and powerful are these Russian hackers after all? Are our cyber experts merely standing around with dildos in their mouths, as these powerful king makers plant FAKE NEWS across the world — causing rifts, election upsets, and wars?

CNN is now reporting that the siege of Qatar, implemented by Saudi Arabia, is the result of fake news stories planted by strong as shit Russian programmers, raping Qatar’s state run news agency, which caused Saudi Arabia to starve the people of Qatar to death.

Moreover, as per CNN fake news, the Russian hackers are believed to belong to Putin himself, as ‘nothing happens inside that country’ of 16,377,742km, without the expressed permission of the government.

During the CNN report, they mentioned how Russian hackers interfered in the recent French election, something that was rejected by French intelligence agencies and even Macron.

To date, intelligence agencies have yet to provide any proof of Russian hacking, even the fact that they exist, aside from their firm assurance that they’re out there causing chaos.

Just today, President Trump praised the actions of Saudi Arabia and affirmed that Qatar was funding terror.

During my recent trip to the Middle East I stated that there can no longer be funding of Radical Ideology. Leaders pointed to Qatar – look!

— Donald J. Trump (@realDonaldTrump) June 6, 2017

So good to see the Saudi Arabia visit with the King and 50 countries already paying off. They said they would take a hard line on funding…

— Donald J. Trump (@realDonaldTrump) June 6, 2017

…extremism, and all reference was pointing to Qatar. Perhaps this will be the beginning of the end to the horror of terrorism!

— Donald J. Trump (@realDonaldTrump) June 6, 2017

Yet another victim of the malicious and insidious forces of Russian powered fake news.

Un-fucking-believable.

NOTE: Saudi Arabia has given Qatar 24 hours to comply with their demands, else face military confrontation.

Saudi Arabia gives #Qatar 24 hr ultimatum to fulfill 10 conditions that have been sent to #Kuwait https://t.co/OpWGvvDY7r #Iran #QatarCrisis

— Reza H. Akbari (@rezahakbari) June 6, 2017

I’m not sure how I feel about the President shitting on the Mayor of London. On one hand, I prefer chaos and love to see shills like Khan get destroyed on a daily basis. On the other hand, why is Trump bothering with a Mayor of a city? It seems so pathetically small. After all, we have bigger things to do, such as BOMBING NORTH KOREA into their rice paddy graves.

Trump has been battling with the Khan for more than a year.

Because Khan is muslim, most hillbillies believe he’s a terrorist. The same could be said about Northern stereotypes of southerners as being slave owning racists who enjoy high school football a little too much.

Alas, this is the timeline we’re in, with the President of the United States battling with a midget mayor from across the pond on Twitter.

At least 7 dead and 48 wounded in terror attack and Mayor of London says there is "no reason to be alarmed!"

— Donald J. Trump (@realDonaldTrump) June 4, 2017

Pathetic excuse by London Mayor Sadiq Khan who had to think fast on his "no reason to be alarmed" statement. MSM is working hard to sell it!

— Donald J. Trump (@realDonaldTrump) June 5, 2017

Today the White House press pool was questioning Sean Spicer about the President’s use of social media.

Here is the Mayor of London, Sadiq Khan, saying Great Britain shouldn’t welcome the President of the United States into the country — because he doesn’t represent their values.

He does not, however, hold migrants to the same stringent ethical code, as he welcomes hordes of low IQ reprobates into London with open arms.

Hurry up and get into this clown cars.

Here are the top performing ETFs over the past week, according to Exodus.

GBTC +132%
JNUG +22%
LABU +15%
NGE +12.6%
SIL +10%
GASX +8%
JPNL +7%
NUGT +7.4%

And here are the losers.

JDST -21%
LABD -14%
HAKD -13%
GAZ -11%
GHE -11%
DUST -8%
DSLV -7%
FRAK -6%

The MSCI Momentum Index just rallied 11 days in a row, through Friday, making it the longest winning streak since 1992.

Back then, teenage Le Fly was busy drinking malted liquor, acting incredulous, sashaying (no homo) throughout his High School hallways in search for hedonism.

Today, I sit here talking to you fucking retards. It’s not fair, but it is what it is.

Gains in the MSCI index were buoyed by S, ADKS, BBY, VEEV and MU. Out of 125 stocks, just 14 declined.

We’ve entered into a market phase of ‘calm normality’, a tranquility not enjoyed since the wondrous days of 1928.

“This type of thematic has a history of unwinding in a violent manner,” Chad Morganlander, a money manager at Stifel, Nicolaus & Co. in Florham Park, New Jersey, said by phone. The firm oversees more than $220 billion. “This burst of momentum is being driven by searching for consistent growth. The herd is moving into that direction and valuations are toppy.”

Fuck you, Stifel.

The average PE for the MSCI is 30, which is roughly 39% higher than the S&P 500. While that might sound frightful, it’s also so delightful.

There’s a lot of idle chatter of markets being on the precipice of complete and utter disaster. With so many traders trapped in evil ETFs, implementing margin to boost gains, I can’t see any way this ends badly.