I turn around for 10 mins to eat a sandwich and next thing I see is the Dow up triple digits and everything is fucking roaring higher again. Didn’t everyone read my last bloggery?
Look at that volume spike in WTI and subsequent move higher in crude. Crude up, stocks up.
Yen is lower for this first time in April. This is another reason for wanton celebration, apparently.
To see prices rise is normal. It’s human nature to build and progress and improve standard of living. Well, at least these things are true in civil societies. It’s never a ‘scam’ or ‘fuckery largess’ when stocks rise. When you’re selling short markets, you’re betting against the evolutionary spirit of mankind.
Having said that, I remain short XLE. Indeud.
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WE LIT (extra harold hamm)
Oh the shenanigans!!
That spike was at 8am GMT. I was awake half the night scratching my head. And there have been at least two more high-volume events. Look at UWTI, as well. And every airhead on the Internets who has bought into this bs is jumping up and down like a kid in a candy store.
There is also a rumor going around of some sort of Russian-Saudi pre-agreement, adding to the level of batshittery.
Rumor is that Saudi Arabia and Russia apparently have agreed to freeze production
People don’t udnerstand the difference between something being at a high level and something increasing. Example:
year 1: Milk = $2/gal -> low price (low level)
year 2: Milk = $2.01/gal -> low price, low inflation (low rate of change)
year 3: Milk = $4/gal -> high price, high inflation
Now this next one is where people get confused
year 4: Milk = $4.01/gal -> high price, **low**inflation
Most people on experiencing this will call it high inflation, even though the price barely moved.
So freezing production is **not addresssing the oversupply issue*. Let’s say your are parked 1 mile in fornt of a brick wall. You salm the accelerator, going faster and faster. If you decide to stop accelerating once you reach 70mph, that ‘s much different than hitting the brakes.
Until somebody agrees to **cut** production (or until the demand slowly catches up), the oil oversupply issue will remain.
The sirens are screaming and the fires are howling
Way down in the valley tonight.
There’s a man in the shadows with a gun in his eye
And a blade shining, oh, so bright.
There’s evil in the air and there’s thunder in sky,
And a killer’s on the bloodshot streets.
Oh, and down in the tunnel where the deadly are rising,
Oh, I swear I saw a young boy down in the gutter,
He was starting to foam in the heat.
http://www.azlyrics.com/lyrics/meatloaf/batoutofhell.html