It’s all bullshit. After Trump won the election, a giant short squeeze ensued, pricing in the construction of the biggest fucking wall ever conceptualized in the history of the world. Although the southern border wall will only stretch 2,000 miles, the sages on Wall Street priced in a wall that would wrap around the fucking planet three times, with all of the grotesque moves squeezed out of very weak and very impaired material names.
Some of the standout over the past month include: $AKS +70%, $CLF +61%, $X +61%, $KRO +55%, $IIIN +51%, $TMST +46%, $CMC +43%, $HSC +43% and $AA +39%.
I can droll on and on over the gains — highlighting a very perverse and decadent market that has disconnected itself from reality.
Art ‘let’s marinate some iced cubes in this here whiskey’ Cashin throws a cold towel on the hotter heads out there — reminding them of reality.
WTI was hammered today, nearly 4%. Basic resource stocks were the only outliers to the downside — led by $FCX clown slapped for 5%.
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Release the fury, fed
tick up
tick,it,up
Total short term thinking albeit well done. What about the medium term in oil? Unless you can hire a genius and find an another way to get you from the house to the store and back, I am quite sure oil is a big buy and hold. Best.
Take a minute and look around here…
https://www.iea.org/oilmarketreport/omrpublic/
Where is the growth in oil consumption going to be coming from?
Iran, Iraq and the like are turning on the faucets full blast. China maxed out all reserves, we have as well. Where you going to store the surplus?
anything with .iea. in it is useless and will cause you to lose money.
You’re a bot, aren’t you?
Love Cashin’s qoute about endemic fear lurking about. That dude is the cool side of a pillow.
The thought of talking about Italian banks made my heart flutter a moment. Though in the end, Italy doesn’t mean much economically, and it’s diminishing more by the year.
The implication that Spain and other countries may want to break up the band (not just UK (well kinda)) is far more deconstructive than Italy’s economic engine.
You can see the debt concerns starting to creep back in the oil services and producers.
Inflation boogeyman remains under the bed.
Electing the orange man hasn’t revolutionized our world economy by itself- imagine that.
The comings and goings of the market are exceedingly misleading leading to losses. Average in and never sell.
This too shall pass, but materials are no longer trading on supply/demand fundamentals anymore – when shall they? My guess is whenever the Chinese regulators decide to crack down on their futures exchanges….I’ve never seen volume/volatility of this magnitude before. Chinese stock mkt is moribund, real estate investment got curbed, there has been some supply side reform, and there is a LOT of money looking for a home to counteract CNY depreciation, so what better place is there than metals / materials, which trades in USD?
Won’t end well, but I’ve capitulated (maybe too early) on shorting this sector for the time being….
no offence but fuck china. their day has passed now. I will not buy china stuff be it good or bad. I only buy some euro stuff, usa, and japan. Learned the hard way.
lol hilarious.