The biggest dunces are at the top of this Globalized clusterfuck - in government, business, economics and media. In a country club, it's not what you know, it's who you know. And these morons haven't the slightest clue how dumb they are...
Today's 400 point intra-day Dow reversal was once again compliments of bad economic data, and New York Fed admitting that the fake recovery was over, which combined to shellack the dollar...all very "bullish"...
MW: Feb. 3, 2016
Services ISM Slowest In Two Years
Let's see, dollar weak due to imploding economy, so buy the ever-expanding oil glut. Holy fuck...this rally will last a few hours:
"Oil prices jumped 8 percent higher on Wednesday, snapping a two-day rout, after investors took advantage of a weaker U.S. dollar and shrugged off data showing an unexpected large surge in U.S. crude inventories to record highs...U.S. crude inventories soared 7.8 million barrels higher, topping analysts' expectations for a rise of 4.8 million barrels, as imports jumped and refiners trimmed throughput."
The short-covering rallies are getting shorter and shorter...
Google was the world's most valuable company for one day. Yesterday. From its high yesterday morning, it's down -9%. The momentum trade is done...
The Nasdaq/S&P ratio is rolling over hard due to the rotation to safety...
In a vicious sector rotation into defensive stocks, EVERYTHING that worked last year got sold in size, including oil refiners which got obliterated...the refiners are overflowing with oil...
MW: Jan. 3, 2016
Inventories At 503 million barrels Puts $25 Crude On the Table
Oil inventories (red) with Refinery demand (black):
Tesoro made a new all time high late last November and it's already down -36%:
The implosion of European banks is being wholly ignored. And the contagion that's spreading to U.S. banks is being rationalized away as a "buying opportunity":
"This can't be Lehman again, because I own too much Facebook"
The mass confusion was mainly due to the dollar sell-off. Dollar/Yen was of course weak, which normally tanks the S&P, but oil offset that weakness...
The S&P and Yen crossed over in the past 24 hours
I call this, "overnight risk".
Everything is aligning in the same direction...
Dollar/Yen hourly:
