Thursday, April 20, 2017

The Casino Circle Jerk: Reflation Self-Obliteration

Caution: This game is reserved solely for dedicated fucktards...

Here is how it works:
In 2016 China initiates human history's largest printed money bonanza, following the humiliating currency devaluation debacle. Gamblers looking to front-run global "recovery" buy record numbers of crude futures contracts, boosting crude oil prices by 100%. Fast forward one year and Energy companies post their best profits in three years, contributing 50% of the total S&P earnings growth for the first quarter 2017. Yes, you read that right. 

Once the flame from the Chinese reflation dies down, one by one all of the commodities roll over - iron ore, steel, copper, agricultural products, and finally oil. 

And what do you know, Wall Street's forward profit projections which have fueled the Trumpflation rally are not worth the ass wipe they're printed on.

And who figures that out first? Energy sector gamblers of course:

Because they've seen this movie before...

And therefore they're front-running everyone else out the door.

Here is Energy with % bullish 


All commodities

One more leg lower and Wall Street's entire bullish thesis goes out the door...

U.S. Oil ETF