Congress is cutting a deal to allow retiree benefits to be cut. As you may recall, Congress responded to business lobbying by allowing their pension plans to make outrageously optimistic assumptions about future returns, so the corporations could divert more of their money from pension contributions to short term profits. Now that corporate profits are at…
Last week, OPEC failed to cut production quotas – though it didreveal its own irrelevance. Now, for the first time since 1972, oil prices are being set by the free market, not by a producer cartel. That means much lower oil prices, along with some surprising winners and losers. On top of that, we’re seeing…
UPDATE: WTI just hit a $58 handle… The overnight stability (and brief dead-cat-bounce this morning) has turned into a renewed bout of selling pressure and for the first time since July 2009, WTI has broken below the $60 level. Canada Heavy is trading $42.10 (down almost $4 today!), its lowest since April 2009. Energy credit…
In recent months we have had plenty of news around the current state of the Chinese economy. The golden times of growth for the Asian country seem to be behind it and the government is trying to cope with an economy that has been losing momentum. The macro figures of the past few weeks have…
The times are few and far between that I am in agreement with Senator Elizabeth Warren’s brand of Big Government liberalism. But I do applaud her willingness to stand up to the Wall Street lobby machine; her capacity to recognize and call-out out the egregious gambling dens that have metastasized there; and her insistence that never again should the hard-pressed taxpayers…
“What goes up must come down spinning wheel got to go round Talking about your troubles it’s a crying sin Ride a painted pony Let the spinning wheel spin You got no money, and you, you got no home Spinning wheel, spinning all alone Talking about your troubles and you, you never learn Ride a…
GoPro (GPRO) has been breaking down hard over the past several days. We warned about taking a position in GPRO back in October. Our reason was that Twitter momentum was painting a negative divergence and we needed to see price shake out and create a positive divergence. Here’s the chart we posted on 10/13/14. Subscribers to Trade…
The members of the most powerful financial body in the world (U.S. Federal Reserve Committee) are spending hours on end obsessing over two words: “considerable time.” I kid you not. You can read the minutes from the last FOMC meeting here for yourself. You’ll notice that the longest paragraph by far consists of a debate over whether…
Crude oil is more oversold by monthly RSI than it was in either 2008 or 2001. Amazing. Now if only my oil man will get the memo. My suspicion is that these guys are dragging their feet, wink wink, nudge nudge. Maybe expecting a bounce just around the corner?
As many of you are no doubt already aware, I have been tracking the trends in the nation’s oil inventories over the past several weeks. Unfortunately, other matters prevented me from posting an update last week so this article will discuss the past two reports from the U.S. Energy Information Administration. One of the most…
