Bulltards inhaled a fresh breath of desperately needed bullshit this week, even as the Commodities complex went into liquidation mode...The chasmic divergence between non-stop bullshit emanating from Trump, the Fed, and OPEC versus reality has never been wider. Today's "better than expected" payrolls report was a scrap of desperately needed flotsam in an ocean of denial. And yesterday's House Obamacare repeal was viewed as a step closer to tax cuts for billunaires...
But don't take my word for it:
ZH: 'Someone' Is Blowing Up
"Movement on US fiscal policy ["Tax Cuts"] is currently driving US rates and equities higher, counteracting the tremendous negative implications of this ‘Chinese tightening / deleveraging’ story and the impact this is having upon commodities"
Equity futures and US nominal rates are currently holding higher, despite what looks to be a total breakdown in crude oil and commodities turning outright ugly now.
The simple fact is that global liquidity--and thus, financial conditions as well--are tightening.
Margin calls are rolling in across the commodity complex
The reflation lie is GLOBAL in scale
We've never seen this before - Emerging Market stocks (black) versus Energy stocks (red) and Oil (gray):
A Macron win on Sunday is fully priced in and then some...
The Magic Unicorns are saved, for the moment...