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Teetering Trannies? Oil "Could Get Very Very Ugly, Very Very Quickly"

Tyler Durden's picture




 

As WTI Crude tests new lows this morning (Dec contract $45.32) after API reported a huge build...

Brent resumes downward trend, briefly dips below $48 to lowest level in over 2-wks. WTI extends drop toward $45 after API reports larger 7m bbl increase in U.S. crude inventories.

 

“API showed another huge build in crude stock yday -- now markets are awaiting today’s official EIA report for confirmation of the trend,” says Global Risk Management oil risk manager Michael Poulsen.

 

“Refinery utilization continues to be low due to maintenance season; could be a reason for the larger-than-expected build”

WTI at 3-week lows...

 

...we can't help but wonder "what happens next" in Dow Transports as the exuberant index has decoupled from oil for the 3rd time in a week...

 

Is third time the charm?

There is only one problem!!

Gartman on WTI CRUDE OIL:

 

The Contango Widens and Trend Lines Are Broken: We were fortunate enough to have exited long positions, now we have to find a point at which to enter from the short side for we fear that this could get very, very ugly and do so very, very quickly.

Charts: Bloomberg

 

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Wed, 10/21/2015 - 09:03 | 6693632 knukles
knukles's picture

Teetering Trannies?
Bruce should start out on lower heels. 

Wed, 10/21/2015 - 09:04 | 6693641 ShorTed
ShorTed's picture

Brilliant, well played.

Wed, 10/21/2015 - 09:10 | 6693665 Manthong
Manthong's picture

State law requires that the bartender stop serving .

Wed, 10/21/2015 - 09:16 | 6693682 VinceFostersGhost
VinceFostersGhost's picture

 

 

Unleash the miles of Iranian tankers!

 

There's gonna be so much oil out there.......we're gunna puke it.

Wed, 10/21/2015 - 10:08 | 6693935 El Oregonian
El Oregonian's picture

Teetering Trannies? hmmm, I thought bruce was milking...

Wed, 10/21/2015 - 10:09 | 6693946 Pure Evil
Pure Evil's picture

 

 

"this could get very, very ugly and do so very, very quickly"

Gartman needs to stop looking in mirrors.

Wed, 10/21/2015 - 09:05 | 6693645 Bryan
Bryan's picture

Oh, I see what you did there.  Clever.  :-)

Wed, 10/21/2015 - 09:03 | 6693636 adr
adr's picture

You spin me right round baby, right round, like a record baby, right round round round.

Wed, 10/21/2015 - 09:07 | 6693648 buzzsaw99
buzzsaw99's picture

imo the correlation isn't what it used to be. many trannies started heavily hedging fuel costs so that lower fuel prices can actually hurt them. add to that the greater depression and that's all she wrote.

Wed, 10/21/2015 - 09:11 | 6693670 Herodotus
Herodotus's picture

Who is this "we" that Gartman is always refering to?  Does he have an imaginary friend?

Wed, 10/21/2015 - 09:21 | 6693709 christiangustafson
christiangustafson's picture

Gartman cursed the Cubbies.

Wed, 10/21/2015 - 09:26 | 6693727 Government need...
Government needs you to pay taxes's picture

Maybe there are separate plunge protection programs for commodities versus equities?

Wed, 10/21/2015 - 09:34 | 6693758 ghostzapper
ghostzapper's picture

Market will await Gartman's complete procurement of his "position" in November $40 Crude puts and then promptly initiate a violent stop run to the upside thus eviscerating Gartman's puts.  After Gartman tells his buddies he was stopped out with "only" a 20% loss (highly unlikely with options), then the market will resume the downtrend that has been in place since . . . . . . . well several months now.   

Wed, 10/21/2015 - 09:37 | 6693770 MadVladtheconquerer
MadVladtheconquerer's picture

Yaaa, lower oil prices have always been a drag on the bottom line of most transportation-centric businesses like FEDEX and UnPac as well as

the airlines.  I guess that's the correlation when left is right and up is down and stupid is smart.

Look forward to about 26 more wks of net inventory builds!  Can you say "oil stores higher than the peak 491mill barrels from April 2015"?

I knew you could. 

Wed, 10/21/2015 - 09:57 | 6693864 FreeSlave
FreeSlave's picture

Dow Transports are up just because of the holliday seanson comming up... Now FedEx, UPS and others transport more goods for the preparation for holliday season... that is all.... it will last another month, month and half... after that it will drop a lot...

Wed, 10/21/2015 - 10:41 | 6694106 15horses1donkey
15horses1donkey's picture

If things are getting spastic, you will want yourself something you can afford to trade. Zero Hedge Coin 0 is what you want. ZHC0 is a cryptocurrency, in the process of being created. Find more at http://zhc0.com and vote for how it should be constructed. BTW I don't believe for one minute oil will go up. For the moment ;-)

Wed, 10/21/2015 - 11:21 | 6694269 Deathstar
Deathstar's picture

Teeterting Trannies???

Gee, I thought they were doing interviews in a fag bar around 1AM on a saturday.

Wed, 10/21/2015 - 20:47 | 6696723 SILVERGEDDON
SILVERGEDDON's picture


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