Archive - Mar 10, 2015 - Story

"...we have now graded two years worth of Cramer’s picks: those made from January 2011 through December 2012. That amounts to 552 calls overall, of which 254 outperformed the index (46% hit rate). On average, Cramer’s picks returned -0.08% versus the 1.35% S&P 500 return over the corresponding period. That amounts to 142 basis points of quarterly underperformance, or 568 basis points on an annualized basis, which amounts to an F grade in our grading system."

Against expectations of a 4.75 million barrel build, API reported an estimated inventory draw of 404,000 barrels - potentially ending the 8 week build streak if DOE confirms (following last week's huge DOE-reported 10,303 million barrel build). The initial reaction of the machines was a jerk higher, perfectly tagging $49.00, before tumbling back into the red.

It's that time in the quarter when DoubleLine's Jeff Gundlach holds one of his trademark open webcasts with anyone who cares to check in, this one titled Blockhead. In it "Mr. Gundlach will be discussing the economy, the markets and his outlook for what he believes may be the best investment strategies and sector allocations for the DoubleLine Total Return Bond Fund."

The captured corporate MSM is celebrating the six year anniversary of when the stock market bottomed in March 2009. They will spin a false narrative of Bernanke, Obama and Geithner saving the world with TARP, QE, and the $800 billion Porkulus bill. In fact, Bernanke and Geithner stopped the market from falling in March 2009 by threatening the accounting geeks at the FASB and forcing them to allow fraudulent reporting by the insolvent Wall Street banks. The crisis ended – precisely – on March 16, 2009, when the Financial Accounting Standards Board abandoned FAS 157 "mark-to-market" accounting, and Mark to fantasy was born.

The only important line from the 15 or so minutes that Hillary Clinton devoted to the biggest political scandal rocking the nation was not that she "only used the personal email for convenience"; it was this:

• "I did not email any classified materials."

Aside from all allusions to an almost verbatim line used by her husband when he too was in a sticky, so to say, situation during his presidency, this statement by Hillary is a problem, and could potentially be the dealbreaker fir her presidential application. Why? Because of this.

... gradually, from one scare to another, many – and especially those who have nothing left to lose – have given up looking for defenses, whether individual or collective, and have given in to the sin of sloth. They are not lazy or indifferent but experiencing emotional apathy. It has become a certainty that our destruction is much worse than a self-fulfilling prophecy: It has been orchestrated from outside. Either to punish the “lazy Greeks” or to warn others being tempted into believing that the European Union – as it is today, as a herald of a policy of austerity that can’t even be backed by the numbers – is repulsive rather than attractive.

The former Secretary of State with the now infamous clintonemail.com server and democratic presidential hopeful, Hillary Clinton, will speak live at the United Nations Commission on the Status of Women in New York shortly. She is expected to discuss the email, although not extensively. Watch it live here.

This was not supposed to happen... Once again it appears that front-running the central banks hints and selling the actions is the new normal as (just as occurred in the period around the Q€ announcement), despite pushging higher last week, inflation expectations have tumbled lower since Draghi unleashed the trillion-euro bazooka...

Just as in the case of oil currently, the problem with gold (and countless other commodities) trading where it does, is that as we have shown repeatedly on previous occasions, it is at or below the marginal production cost of various gold producers.  And with miners losing money on every incremental ounce (or barrell) they pull out of the ground, there is only so much capital they can burn before they have not choice but to file for bankruptcy. Which is precisely what happened to Allied Nevada Gold, the operator of the gaming state’s Hycroft mine, which earlier today filed for bankruptcy in Delaware. The company blamed its deteriorating financial condition on the drop in gold and silver prices in recent years, an overleveraged capital structure, delays in a key expansion project, and currency swap exposure.

Oil storage capacity in the US is now at 60% and is set to be completely exhausted in just three months. With storage at a premium, the contango breakeven trade will become increasingly more unprofitable and come June, each incremental barrel will have to be dumped on the market forcing prices lower.

In summary: a very strong auction, one in which foreign central banks dominated, and certainly another confirmation that nobody is concerned about a surge in short-term rates any time soon.

The US economic recovery continues as the number of homeless in New York's shelters rises 50% in three years. De Blasio says New York needs to take "immediate and bold steps" to combat the worsening problem. 

From the meltup to Nasdaq 5,000 day to today... The Dow is down 600 points from its highs...

When does the Euro become the Ruble?