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Not every asset class in the world is buying this as the renaissance of risk-on...
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WTI is low enough now that the refineries will be shutting down.
Who needs oil when you have iPhones to eat and keep you warm
Click your heels together ... Hop on one foot while you wish on a shooting star during the blue moon. Washington and fed have your back
The moon light will help identify you with a drone in case you don't see the light
WTI is an input cost for refineries, they want it to be low.
Here's a quarter. Buy a clue.
http://oilprice.com/Energy/Oil-Prices/Peak-Oil-Crisis-Being-Compounded-b...
And if you are on the West Coast. Leave. The "CHinese" smog has arrived. Good luck Hollywood, nobody was watching you anyways.
http://enenews.com/officials-large-release-of-methane-off-los-angeles-co...
Black Markets is correct.
The reason East coast refineries are closing down is because they buy Brent, not WTI. They cannot benefit from depressed WTI prices because there is no good way to get WTI to refineries in PA and NJ.
http://abarrelfull.wikidot.com/blog:why-are-refineries-closing-down
You wouldn't want to get WTI to PA or NJ anyways. Cost to transport would be astronomical, even with the pretend pipeline plans in effect.
So yes, a refinery is part of the cost of oil at the pump, SO IS EVERYTHING ELSE IN A INFLATIONARY ENVIRONMENT. ...burn that into your minds already. But when oil prices are manipulated down in that environment, means you have less money to do other things. Like keep a refinery open.
Oil is one TINY piece of the energy problem. While significant that it is part of the process that makes engines run, it could, in theory, be replaced with human's liquified into methane and ethanol tomorrow. So what is refined isn't the issue. The cost of everything else goes up while the base cost of the resource that you are making money on falls.
So who cares, the refiners will go bust and so will Exxon and BP, Shell might make it...maybe, it's got a lot of debt and poor management so that's a big IF. Once the round robin subsidization goes away and the prices settle in proper price range of 310 (where it should be). My bet though is they keep sitting on the price to hedge inflation and destroy their projects ass up with inflation.
Just like every refinery plant so far.
Actually more and more Bakken oil is making its way to east coast refinerers via rail and given the price spreads it is extremely profitable for the refiners to rail it in. Listen to the most recent earnings conference calls from Continental Resources , EOG Resources or CSX for an informed view on carload data. Refineries normally undergo periodic maintence closures, and or closures for modifications to accept different crude types so as to maximize throughput. Not sure what CPL's agenda is, but an informed discusion of refining, oil by rail, or WTI vs Brent usage it is not. Continental Resources devoted part of its conference call to explaining the coming benchmark of bakken crude potentiallyeventually surplanting WTI as the primary domestic benchmark
add Dr. Copper to the list of non-confirmers
Goldman has started a long copper trade today...
uh oh
Surely, this is an anomaly and everything if fine, even good, doubleplusgood!
Buy stocks! The Dow is the new safe haven.
http://www.cnbc.com/id/100525742
I'm really looking forward to the day when 'doubleplusgood' gets adopted by the broader public as part of everyday newspeak.
GODDAMN SNOW AGAIN!!!!
AAAAAaaaaaaRRRRrrrrGGGGggggHHHHHHHHHHHhhh!!!!!!!!!!!!
WHY DO WE EVEN BOTHER WRITING A SCRIPT IF NOBODY FOLLOWS IT???!!!!
Sub-tropics, baby, subtropics. :) I forgot how snow looks like, heh-heh.
Did Belgium have any colonies in subtropic regions? Move there!
If Morons could fly....
WALLSTREET WOULD BE A AIRPORT!!
Had to steal this for further sharing.
but, but, but Cramer says this a bull rally /sarc
Ok, so we take ze money you haf on you
And we calls it even
http://www.metacafe.com/watch/an-KDCBtbuJ7hbb2u/the_big_lebowski_1998_fi...
FX is definitely not buying whatever bullshit is being sold on the Hopium market.
"It's a very good time for the small investor to come back into this market" courtesy of the asshat cheerleaders on CNBS. Eveything very, very good. In fact it's the gooderest time ever....
Wait, is that quote current -- not from 2007, not from 2008? Is this being said on ClownNBS & other networks? LOL
Heh-heh.
Yes, and whats that company's name again...oh yes, John Hancock. They have a new ad where this pathetic couple is discussing 'maybe we should get back into the market".
Is there no intergity left in America...anywhere? Will Wall Street be happy when the last dime from the middle class is held out to buy the bread that Wall Street now owns lock stock and butter? And, back to that ad...I think it is the same guy who used to stand by the water cooler and pretend he understood what the other two guys were saying while the cloud above his head was a cow chewing its cud. Just the kind of guy the ad is aimed at.
i was just thinking the exact same thing - it's even more apparent when you compare the daily charts
Right now "It is different this time..."
Will it be so tomorrow or the next day?
At least pms have been holding up due to dip buying. We'll see how they'll survive the beige book today.
This "economy" is like watching a friend who is a drug addict....the way they earnestly tell you about their plans to get their life back on track, do the right things etc.
I understand that the latest plan is to combine Fannie and Freddie and re-instate them as "private" enterprise. Dear God, how pathetic.
Decent interview with Charles Nenner on Bloomberg: http://bloom.bg/13AWxv4
To summarize, its all down from here... We'll see. I acknowledged long ago the stock market represents very little about the real economy, who's to say that spread doesn't get even wider.
Don't discount Nenner... he's usually spot on. Thanks for posting this.
yes, but as we all know, things can go on for a very very long time...long enough to pull the last dime from your pocket thinking it is time to short a stock or the market.
Always best to have a plan to know when it is too early or too late, but not be in the crowded trade either.
With the Fed this loose "anything is believable." I do grant that you have to be "the best of the best of the best" to trade this thing. What asset isn't overpriced here? Anyone?
the precious metals aren't overpriced here
You are correct. The spot is near the cost to extract and process by a few hunderd bucks. If PM goes down the mines will shut down and the price will jump.
The Fed is a metastasizing tumor.
Some jackass on CNBS earlier stated that the strong $ was because investors overseas are seeing growth in the U.S.. Boy was he full of IKEA pudding. The $ is strong because Europe would fall into the Atlantic without it's swap lifeline, and Every E/M central bank on the planet is using it to rinse their overheated currencies. (Thanks to chair satans $85b per mo. printfest).
The U.S. is letting the $ strengthen as they know every C/B on Earth would be up in arms over the inflation the Fed. is causing, if they couldn't buy $'s to keep the heat off their currencies.
Clear distribution day today, many suspicious long-wicked candles immediately followed by mini-plummets, several pushes 10 min before the top of each hour on higher volume, all just near VWAP, with no follow-throughs, clearly at least some of the "big-boys" are getting out. Yet, despite the clear evidence from the candles (don't need Nison's book to see today's chicanery), I'll just bet we rally late to finish at least up 50 on the DOW. Can't let in any leaks in the narrative, not when all the consumer mags are preparing "New All-time Highs" issues for the weekend.
Still early, but it does look suspicious.
Good ole Dr. Copper has broken down from a 3.5yr wedge of lower highs/higher lows??? Wonder if this has any predictive powers???
Implications seem rather "unbullish" that we don't need the basic building blocks...almost like China is gonna take a little time out...at which point a quarter of the worlds exporters focused on China cried out in agony...as if China couldn't keep on building cities, freeways, infrastructuure for the rich to be occopied by the countryside poor that are now no longer needed as China modernizes / automates / stream lines. Great mismatches of history.
I've found some good opportunities in esoteric places like micro-cap equities and options on specific ETF's and small cap biotechnology companies with strong catalysts. The rise in both the DOW and S&P 500 is unreal. I think a mix of POMO purchases and VIX compression has been driving this market ever higher. POMO can continue for a long time but VIX compression cannot. The Vega on the VIX right now is incredible. Any slight downward move in this rally and the flood gates open to an immense stampede of selling. Very dangerous market here especially for the retail investor who is thinking of just starting to go long at this point in time.
Is Kevin Henry at work today?
Lazy punk is probably too high on junk to make it in - You know how it is over at the Fed with all those drugs strewn around the floors like candy in a playground
I've done my part to push up the VIX. I moved out of equities. FU Ben. You F'n financial terrorist. Holder should drone your ass.
people are finding ways to ship Bakken light and Ft. McMrray bitumen via rail to east coast refineries.
Partly on account of Obama's refusal to allow Keystone to be built.
Life is not so simple as it would seem .....