BRENT CRUDE SLAMMED FOR 4%, TRADING AT SIGNIFICANT DISCOUNT TO WTI

Brent is off by 4%, increasing the spread v WTI to almost $1. This is massively important to our refiners, who might just choose to import that cheap Brent in favor of the crap coming out from Texas.

With the spread inversion, the bastards are no longer to rob and steal from the layman American gasoline guzzler.

In the past, they’d purchase crude at WTI prices and then resell it at Brent prices, locking in an instant profit.

Since the oil sector is in ashes, I suppose it’s only right that the House of Saud finish us off by targeting our refiners.

This should mean serious downside action in WNR, HFC, DK and ALJ.

I’ve been real busy trying to crush the hopes and dreams of VC backed finance sites with iBankCoin. During the past two weeks, I’ve been intently focused on providing up to the minute news and commentary, working 20 hours days to separate Ibc from the nonsense and rabble that perpetrate financial relevancy thru their bullshit and useless websites filled with complete shit.

Hopefully, you’ve took precautions entering 2016. I’ve been a buyer of SPY over the past week, while holding a large position in TLT. Having sold out from 30+ positions the last week of 2015, anticipating the hard times to come, I’d like to consider myself to be an unbelievable prophet, a predictor of doom, amidst a sea of pretenders, catamites and the sort.

To be clear, I’ve consumed anywhere from 5-15 dirty martinis, so pardon me if I offend you with amateurish dialogue or grammar.

I believe the market will rise over the next two weeks, which will explain my 200% long SPY position into death. I do not belive, however, that now is a good time to buy individual stocks- hoping to hit pay dirt.

These are dark days and losses should be taken swiftly. Over the next week, whether I like it or not, I’ll be selling out from my SPY positions, while also keeping my TLT. I have zero desire to own individual stocks, at all, something I’ve never done since managing money, professionally, since 1997.

If you have any questions about the market or your bullshit portfolios, leave them in the comments section before I get into Sunday evening news mode– waiting for Asian markets to open.

I saw this movie many years ago, when I lived inside of the sewers of Brooklyn. I am reminded of some of the classic dialogue in this film all the time.

Some of you young hipster morons have no idea what comedy is. You watch idiot YouTube videos of people falling down flights of stairs, or movies starring Kevin Hart, and think that’s comedy.

One of the all time greats, Richard Pryor, stars in this film. Do yourselves a favor and unwind to this film. After a long week of getting punched in the face, you deserve a little joy.

Back in 1937, the Fed thought the economy was doing terrific. They thought the Great Depression had ended and prosperity was right around the corner.

They tightened and were woefully wrong. The tightening had a deleterious affect, pushing the economy back into the sewers. If it wasn’t for Hitler bailing us out, the country would’ve fallen apart.

Today’s disaster was brought to you by The Federal Reserve.

Two thousand and nine the end of the fucking world was literally happening. Western finance was on tilt and people were jumping into alligator pits. We’re off by 8% on the $SPY for the month of January. As indicated by the title of this post, the last time we bombed out like this was in 2009.

Before you get your hopes up for February, listening to talking cigarettes on CNBC who are telling you to buy oil stocks, have a look at what the SPY did in February of 2009.

The Fed isn’t coming to our rescue this time. Look for the Chinese market to completely annihilate itself– and close for good–this sunday evening.

The great iced cube marinator would like to have a word before heading out to the pub for a Friday evening of scotch on the rocks.

The amount of commodity related debt whose share prices are trading under $5 is now an astounding $526 billion.

Equity markets are all but closed to these companies. How will they restructure their enormous debt loads? Thru bankruptcy court.

Here are some choice names.

PBR: $125 billion

VALE: $31 billion

FCX: $21 billion

MT: $20 billion

SDRL: $12 billion

CHK: $12 billion

SID: $11 billion

LINE: $10 billion

BTU: $6 billion

SD: $4 billion

UPL: $3.4 billion

Right behind it, stocks trading between $5-6, is another $23 billion in debt. All of those fuckers will go down the drain too.

CNX, WLL, AMID, CELP, ATW.

Thank God our Federal Reserve is aware of the credit issues in these companies who employ thousands of Americans.

Some of today’s more alarming drops in the oil patch include: OAS (-15%), ATW (-17%), WLL (-14.5%), REI (-11%), BBG (-10%), RDC (-8%), MWE (-8%), RIG (-7%), PBR (-8%), APC (-7.5%), CNQ (-6.6%), APA (-6%), DVN (-6%), SM (-15%), CWEI (-12%), SN (-11%), ECA (-10%), MEP (-10%), SEMG (-13%), ETE (-10%), NSH (-10%), TRGP (-9%), WES (-9%), WMB (-8%).

If you’re looking for a scapegoat, go ahead and blame the Fed. There inability to calm markets is indicative of the type of leader Janet Yellen is. She will go down as the worst Federal Reserve chief in the history of the United States. She’s permitted her band of moronic Fed governors run ragged across America, giving one submental speech after the next, praising the virtues of JACKING UP INTEREST RATES INTO THE FUCKING TEETH OF A CATACLYSMIC DECLINE!

Asshats!

Breadth is at 93% to the downside. The median loss for the oil and gas sector is nearing 8%, FOR THE DAY. Solar is down 7%, tankers 7%, REITs -6%, Biotech -6%.

Because of the downside moves in oil and gas stocks, debt/equity levels have soared, pushing the levels of distressed debt to $330 billion. Moreover, the second layer of fucked companies, just behind that 330 billion, whose debt to equity levels are between 2-5, now have $390 billion in debt. All in all, we have ourselves a grand olde fashioned crisis. Don’t listen to what the Fed guys are saying. These chickens are coming home to roost. Banks will need to write these loans down and soon.

2nd tier of fucked oil companies

Brent is now below $29.

Like all rational life forms on the planet earth, Larry of America Kudlow doesn’t understand why the Fed is committing to hiking rates “every quarter for the next 3 years.” World wide deflation has flung all markets into wheeled chairs and now Janet Yellen is taking those chairs and kicking them down a flight of stairs.

Larry posits: The Fed is operating on a model that hasn’t worked in 30 years and how the unemployment numbers aren’t accurate. Deflationary pressures, world wide, is the concern. Manhood aside, the Fed should be easing now.

“This is not the time to raise rates.”

Amen.

The hedge less hedge funds that we all know too well are getting smoked out in 2016. With today’s decline, funds like Pershing Sq., Greenlight and Valueact move deep into the mid double digit loss column for the year.

And it’s not even the mid point of January.

But no large fund that I’m tracking is down more than this one: Baker Brothers.

Early last year, and for the past 3 years, whatever they touched turned to gold. Now they just look insane. Their losses are in excess of 20% for the year now, based off their reported positions.

The once hot biotech sector has been absolutely destroyed in 2016, with dozens of stocks down 20-50% so far. The vast majority of these stocks came public over the past 3 years, during the great biotech boom. Now they’ve gone bust.

Out of all the distressed sectors, this one is definitely worth watching. The demographic shifts will favor healthcare for decades to come. Baker Brothers had the best research in the biz. I could only imagine how some of the less astute biotech funds are doing this year.

Dreadful.