Thursday, March 10, 2016

Globalized Kill Shot: "More Pain Please"

A funny thing didn't happen while denialistic circus clowns were blowing smoke up everyone's asses non-stop...

Idiocratic Oil "Rally" visualized:
U.S. Oil ETF (weekly):

"Oil" lifted from its decade lows on declining volume, amidst rampant cheerleading and bottom calling, but mostly short covering. 

CNN: March 8, 2016
Goldman Sachs: Oil Rally Is A Headfake

Nothing will put an end to this serial lying clusterfuck than oil falling through the floor. Although the Nasdaq taking its next leg down will soil equivalent underwear. 

The USO Oil ETF reveals the pain felt by those long "oil" via the futures, because it absorbs all of the monthly carry costs. In other words, it's been a non-stop losing trade for two years straight, yet there's still no capitulation. Yet. 

The last two oil expirations are highlighted by the tallest two red volume bars. Last day of trading in the current contract is Monday March 21st...

U.S. Oil ETF  with S&P 500 (grey background)
Reuters Mar. 9, 2016
Oil Extends Tight Correlation to Stocks

Junk bonds were strong today relative to stocks
The same as they were the last two times the market crashed...

S&P/Junk ratio: