The latest weekly jobless claims data made for a classic 'Bad News Thursday', printing 6.648M vs 3.307M prior week (revised). Equity futures swung lower from SPX +40pts to -30pts, opening in chop mode.
The US President appeared...
That tweet helped give oil and the main equity market a very significant kick upward in mid morning. Whilst a supply cut is necessary - not least as global storage capacity is near 100%, it will do little to stall the looming bankruptcy of most of the US energy industry.
Yes, I would agree its possible the US Govt/taxpayer will also issue a bailout to this sector. Again though... extracting a resource - in this case WTIC and Nat' Gas, at a perpetual loss, is sheer madness, and is NOT. SUSTAINABLE.
... but hey, we're in the twilight zone, and in these times, loss making companies are still something that many think is 'fine'.
The afternoon saw considerable chop, leaning
Volatility remains extremely elevated, with the VIX settling -10.8% at 50.91. A major drop, but we're still talking about VIX in the FIFTIES!
A fair number of you won't listen, but it merits hearing...
Denniger just calling the monsters... for what they ARE.
Its fascinating to see how most of those whom have long touted 'freedom and liberty' act like little sheep to the political hacks, who are using the Corona virus to quietly pushing through some very dark sided legislation. Disagree? Well, I'm guessing you were the one panic buying in early/mid March, as you've never seen anything coming further than your next Dominoes pizza delivery.
To the rest of you... hang in there, the collective can't stay 100% insane forever. At some point, semi-normalcy will return... if only for a few months until the second wave, from October onward.
|Sunset in the city of Corona|
Extra charts in AH (usually around 5pm EST) @ https://twitter.com/permabear_uk
Goodnight from London
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