Thursday, July 28, 2016

Zuckerberg Shrugged

The world's most overowned growth stock is having a key reversal day on mega volume...

But first, corporate insiders are selling at a rate 28x their buys:

And second, oil just entered a renewed bear market, which means that Energy stocks (blue), junk bonds (red), and Emerging Markets (green) are not far behind...

Deja Vue of exactly one year ago, oil inventories are rising again as a recapitalized oil sector expands production...

ZH: July 28, 2016

66 land rigs and 47 tight oil horizontal rigs have been added since early June (Figures 4 and 5). Last week, prices were crashing but 18 rigs were added, the biggest increase in almost 2 years.

In the first half of 2016, more capital has flowed to E&P companies than during 2013, the previous record year when oil prices were more than $100 per barrel and the tight oil boom was in full bloom (Figure 3).

Oil and S&P 500

The Zuckerberg Omen has been triggered:

Institutions are selling Facebook with both hands, as the world achieves peak Facebook...

MW: July 28, 2016
Facebook admitted that its revenue growth will slow for the rest of the year, and the gigantic peaks it has already reached could make it hard to reboot similar growth rates after that period