Friday, June 10, 2016

Oil Triple Ponzi

Oil is 3x leveraged to China, and stocks are 100% correlated to oil. On the downside. Really, what could go wrong...

"China is importing so much crude, it's absolutely insane. They're importing about a million barrels a day more than they are actually consuming,"

By Smith's count, China has stockpiled about 135 million barrels of oil. The trouble is the most optimistic estimates put China's storage capacity at 155 million barrels, he said.

In theory, China could hit capacity in 20 to 30 days, at which point imports will "drop off a cliff,"

Island reversal. Of fortune. 
Gap up head fake. Gap down reversal.
3x leveraged oil

ZH: May 27, 2016

1x leveraged oil aka. burial by futures contango

Oil versus deflation aka. Global Poverty

Only one of these will be right in the end, and we know which one...