This week in review:
Any questions?
Deflation versus Fed rate expectations:
Deflation with Oil
Oil ETF
Deflation versus bank stocks aka. "short covering"
10 Year yield
Amazon
Facebook
Semiconductors
Indeed
In other words, the Roman circus is ending and Circus Clownius doesn't see it coming, nor do his loyal acolytes...
Rule #1 of Ponzi schemes - always assume a bigger moron is coming along later...
Ponzi schemes are measured in terms of how many people are conned. By that metric, this one is human history's largest without any possible comparison...
What we've learned since 2008, is that trickle down fake wealth is far better than real wealth because real wealth would require balanced trade, balanced budgets, and overall responsibility to future generations. Unfortunately the concept of responsibility is not an option for Generation Madoff...
"Nothing else matters"
Eight years since the global financial crisis and global money printing is running at new all time record levels. Meanwhile Mario Draghi confirmed yesterday that European inflation remains anemic therefore extraordinary money printing is still required in order to propagate the delusion of recovery. In other words, the ECB is the lender of first and last resort for a society hell bent on monetizing the entire future.
We've also learned that the bigger the asset bubble, the "lower the risk"...
"Unlike a stock, bitcoin has neither traditional revenue nor profits behind it"
In other words, the only way to measure Bitcoin valuation is based upon the number of Japanese housewives who are willing to throw their life savings away on it...
This latest (last?) buying opportunity is the hung election in the UK. Recall that Brexit was one year ago this month, and the current melt-up which started in early 2016 is now 18 months in duration...
In summary, the global reflation trade is as dead as a doornail meaning that Go Daddy and Bitcoin are the last "safe havens"...
U.S. Oil ETF
Oil with commodities
Recession stocks
Johnson & Johnson
Philip Morris
Amazon
Go Daddy
IPOs
Snapped Chat rolling over has coincided with the casino tanking twice, albeit mildly. So far...
Some people think that this is the beginning of the end for the American Empire. Unfortunately, it's the end of the end...
"I want your loyalty"
"No"
"I want you to let this investigation go"
"No"
"I want you to lift this cloud over me"
"No"
"Then you're fired"
"What a relief, for a minute I thought there was going to be obstruction of justice!!!"
"We have to raise interest rates to prove the economy is strong"
"But the economy is not strong"
"You lack fake confidence"
The Idiocracy is free-basing Prozac mixed with bullshit. Again...
Tomorrow is the ECB meeting, Comey testimony, and the UK election. Meaning there is "zero risk". Aside from the fourth lower high for the largest U.S. banks:
But first, my how moral standards have fully collapsed...
Way back in 1974, Nixon's downfall was caused by a tape recording revealing that he was considering having the CIA tell the FBI to abandon the Watergate investigation, which by total coincidence was about RepubliCon interference in the election. Fast forward to today's Idiocracy and Trump asked the FBI director to stop the investigation directly to his face multiple times, because according to 2017 Idiocratic logic that's not obstruction of justice. Fair enough, because clearly whatever he is hiding must be far worse than obstruction of justice, that much we can infer from 3rd grade logic.
Anyways, everyone knows that this is how democracy works in a banana republic.
Speaking of deja vu...
What happens when the entire Energy sector rolls over in conjunction with Treasury yields and oil?
The old age home has seen this movie before, but they rented it again anyways...
This new version of the movie has a surprise alternate ending. I call it shock therapy. They're going to love it...
Nasdaq 100
Internet stocks
Semiconductors
Tesla
Nvidia
General Dynamics
Recent IPOs
Bitcoin
Rewind to last Friday...
Fast forward to today:
"The market was geared up for a bid crude-oil draw and got blindsided”
‘A 1.4 million barrel-per-day petroleum-demand drop is the kind of shift one associates with a catastrophic storm or economic plunge.’
Gamblers are still WAY too long this trade...
https://www.investing.com/economic-calendar/cftc-crude-oil-speculative-positions-1653
Fracking stocks:
"Aw fuck, not this again!!!"
Coal stock(s):
"What do you mean there's no such thing as 'clean coal'?"
It's very unusual to get a crude build in June. But don't take my word for it, from the second article above:
the “window for net draws in the U.S. in the 2017 fiscal year is “too narrow for total inventories to normalize.”
At least there's always internet stocks:
