Crude

Frontrunning: February 29

  • Shares fall on G20 disappointment, Fed hike worries (Reuters)
  • China cuts reserve requirement ratio for fifth time since Feb. 2015 (Reuters)
  • China Stocks Tumble Toward 15-Month Low as Stimulus Bets Unwind (BBG)
  • S&P 500 Futures Signal 2nd Day of Stock Losses; Valeant Slides (BBG)
  • Valeant fundamental risks are too severe to suggest the stock is poised for a lasting rebound (WSJ)

China's Panicked RRR Cut Leads To Feeble Stock Rebound; Gold Resumes Climb

After the G-20 ended in a wave of global disappointment, leading to the biggest Yuan devaluation in 8 weeks, and sending Chinese stocks into a tailspin on concerns the PBOC has forsaken its stock market as well as speculation the housing bubble is now sucking up excess liquidity which in turn pushed global market deep in the red to start the week, it was the PBOC's turn to scramble in a panicked reaction to sliding risk exactly one month after Japan unveiled its own desperation NIRP, and as reported before unexpectedly cut its Reserve Requirement Ratio by 0.5% to 17.0%, the first such cut in 2016 and the 5th since the start of 2015.

"Trump Must Be Stopped" Plead 'The Economist' And CFR As Financial Establishment Panics

When such stalwart titans of financial establishmentarianism as the Council of Foreign Relations and "The Economist", who until now had been largely ignoring Trump's ascent in the political hierarchy finally unleash an all out assault and go after Trump on the very same day, you know that the flamboyant, hyperbolic billionaire has finally gotten on the nerves of some very high net worth individuals.

David Stockman: The Good, Bad & Ugly Of Donald Trump

At the end of the day, America is on a slippery slope toward failure because the Warfare State and the Welfare State are suffocating what was once a prosperous capitalism and a resilient free society lightly intruded upon by the machinery of state. But now both parties have become handmaidens of the state. Maybe The Donald’s startling but palpable momentum toward the White House will have one saving grace. His relentless campaign against the “politicians” and the Washington money rackets may end up knocking the hypocritical stuffings out of both parties.

Weekend Reading: Heterogeneous Elucidations

This week’s reading list is a collection of articles from people who have been “getting it right” for the last few years. While they are often dismissed by the media because they disagree with  “mainstream thinking,” it is quite apparent they had a better grasp of the issues in the end.

Hedge Funds Suffer $25Bn In Redemptions As Total Assets Drop To Lowest Since May 2014

After years of investors stoically refusing to redeem their money from underperforming hedge funds, their patience appears to have run out and according to eVestment data hedge funds that suffered losses last year were hit by redemptions worth $24.8 billion in January.  As a result, assets managed by hedge funds globally last month fell to $2.96 trillion at the end of January, the lowest since May 2014.

G-20 Needs To "Man Up" Or Risk Sparking Market Chaos, Citi Warns

“Keeping the previous language would be very disappointing and would be viewed as either complacent or reflecting policy paralysis. [They need to] man up and tell member countries that monetary policy should be accompanied by fiscal expansion.”

Copper & Crude Are Soaring On China Hype

Amid hype hope that China will suddenly change course and unleash all new fiscal stimulus - because just what the nation needs is more ghost cities, ghost bridges to nowhere, and ghost infrastructure - has sparked panic-buying in crude and copper this morning...

Rally In Jeopardy: Gartman Covers His Shorts, Goes Long Oil

"... Rather than waiting to be stopped out of our position some 3+% higher we wish to cover the position immediately upon receipt of this commentary, taking a very small profit and refraining from taking a loss and living to fight another day and in the end succeed."