Heading into the Final Hour of Trade, Markets Take a Turn for the Worse,

Things are about to get real colorful around here. Both the Dow and NASDAQ are knifing lower now, off 89 and 50, respectively. Losses are most abundant in the commodity space, with gigantic slides in tankers (-6%), aluminum (-5.8%), gold (-4.4%) and copper (-4.4%).

Essentially, all of the perversion that was jacking worthless assets higher over the past 5 weeks are being corrected and checked.

A wise man once said ‘the market takes the stairs up and the elevator down.’

I say it’s gonna skip the elevator and jump out the fucking window.

It’s a low volume meltdown and Arthur Cashin doesn’t care for the Fed’s renewed interest in disseminating all of that smoke into their hall of limitless mirrors.

Stocks are inexorably lower today, in spite of the nonsense that is the Dow 30 flaunting minor losses.

The crazy people at the BOJ are intent on buying over $100 billion worth of their bonds, per month, and their yield curve has inverted because of it.

“We hold a lot, and we’re not selling,” said Yoshiyuki Suzuki, the head of fixed income in Tokyo at Fukoku Mutual Life Insurance, which has $59 billion in assets. “We can get interest income. If we sell, there are no good alternatives.”

Demand for their longer duration, 30 and 40 year, bonds have been met with woeful demand of the record breaking varietal. Moreover, the BOJ now represent more than a third of the entire JGB market, a number that will increase as their QE continues.

Demand for JGBs has increased so much since the start of negative-rate policy that it’s flipped the market for repurchase agreements on its head: Dealers who in normal circumstances would pay to borrow overnight cash in the repo market — offering debt as surety of repayment — are instead willing to pay to get access to the collateral.

In summary:

“How can the BOJ head for the exit?” Dan Fuss, vice chairman of Loomis Sayles & Co., said at an event in Tokyo last week. “If they open the exit door, there’s a fire on the other side.”

John D. Rockefeller must be rolling in his grave. His Standard Oil fortune is being managed by left wing lunatics, who grant millions to radical environment groups. The irony is delicious.

This just out via the Rockefellers. They hate evil fossil fuels, whilst shuttling to and fro from posh vacation destinations in their private jet.

What sort of stupid shit is Biden up to today? Oh, I don’t know. How about signing some stupid fucking book, in some non-descript hall, telling the press the Belgians have backbones like grandmas?

Traditionally, grandmothers are old as shit and have the weakest backbones in the human race. Some of them accidentally fall down and break their backbones in 5 places, reducing them into wheeled chair transport until death.

This makes as much sense as our President apologizing for the fucking Spanish American war of 1898 to the dictator scum of Cuba, which he did yesterday.

At least Biden is attempting to show leadership, albeit with asinine words and gestures. I am sure President Obama is enjoying Argentina today. If we’re lucky, we might be entreated to an Obama throwing of the U.K. under the bus, in relation to Falkan Island rhetoric.

A litany of miners are getting smoked out today, crushed under the weight of the bulls hubris. There are zero reasons to be long FCX, X, VALE or BHP after their recent runs.

Nevertheless, many of you remain long.

Considering the exasperated run in this sector, heretofore, there hasn’t been a more opportune time to sell in many moons, or sell short with extreme vigor and tenacity.

Bloomberg is reporting the company is in discussions to sell itself. Since they have a deal in place with Delta, I am guessing they’d be the interested party.

Richard Branson is a brilliant businessman and knows the airline industry well. If he does in fact sell VA, the industry may be topping out. I’d trust his instincts over the perpetually bankrupt American airline industry any day of to week.

WTI should be lower by 10% on these numbers. Look at them; they’re comical.

Crude oil inventories had a build of +9.357 mln (consensus called for a build of +2.5-2.7 mln)

I’m talking my book here, short XLE from $63+; but I cannot think of a better place to put assets than to be short oil stocks here.

Ultimately, all of the gains enjoyed by the new oil mavens will be rescinded and absconded with. There are dark days ahead for all energy longs.

Short seller front runners, Kerrisdale, is out with another report–crushing the souls and net worth of SAGE shareholders.

I love these reports. They’re all very dramatic and guided towards bountiful, almost guaranteed, profits for all parties involved who knew of this report’s existence before it was published.

Shares are barreling lower, with comical spirit!

Listen to me: these people at the Fed have hard-ons,  Yellen included, to hurt you. They want to hike rates straight away, regardless of poor economic acitvity or global terrorist attacks that might slow growth.

Immediately following the Brussel attacks, Fed’s Bullard warned that the jobs market was going to overheat the economy, despite the fact that GDP SUCKS, straddled at 2%.

“We’re in reasonably good shape” with regard to monetary policy but “the odds that we will fall somewhat behind the curve have increased modestly,” Bullard, who votes on policy this year, said in a Bloomberg interview in New York Wednesday. “We are going to get some overshooting here in the relatively near term” on the non-accelerating inflation rate of unemployment “that might cause the committee to have to raise rates more rapidly later on.”

INFLATION IS THE ENEMY.

The market is discounting zero risk. The SPY is higher by 12% over 5 weeks. Crude oil is up 50%, yet nothing on the ground is indicating a jump in productivity or growth.

On these comments, the dollar is catching a bid again, helping crude drop too.

I absolutely hate stocks here and remain long TLT, short XLE.