OIL:As soon as OPEC Secretary-General Mohammed Barkindo left the building after a 2-day meeting in Austria on March 6th, 2020, I was already waiting to hear what he had to say. Despite saying that they were adjourning the meeting, he emphasised that discussions with the Russians would continue over theContinue Reading
Yesterday was when Federal Reserve met to discuss monetary stimulus. After initially spiking, markets continued to slide; however, banks are flooded with liquidity which will have a positive impact on markets to help fight the ever-increasing fear and panic selling. Equities rally as Germany pledges a debt package to contributeContinue Reading
Feds are in printing mode.Federal Reserve announced $500 Billion in 1-month repos and $500 Billion in 3 month repos despite the central bank holding a meeting next week. Stock markets arent taking it well. Already dropped in the last few days, S&P ended the day under $250. Biggest 1-day dropContinue Reading
On top of the covid19 impacts on the economny, the Bank of England makes -0.50% emergency (unscheduled) rate cut ahead of UK budget. Cable (GBP) traders seem to be watching anything but fundamentals as GBP/USD stuck in a range of 1.28 – 1.31 no matter what happens on Earth. InContinue Reading
Europe and Middle East currently have bulk of COVID-19 cases. But this doesn’t mean that North America is immune. Trump just announced relief package for businesses. The virus will be causing economic damage well into Q3 figures even if we get this package. Congress was supposed to have a holidayContinue Reading
Only 5 U.S. shale companies have lower costs to produce oil than the current price of WTI Crude Oil while over 100 companies are already losing money. Put-Call Ratio rose to its highest level EVER yesterday. When I was buying puts at the start of the year people thought IContinue Reading
Markets continued its free fall despite a few days of dead cat bounces. The ENTIRE U.S. yield spectrum for every length of time is now currently below 1%. Last year, I had been calling for U.S. yields to fall to zero percent since many nations around the world are alreadyContinue Reading
$55-$60 US. The price at which U.S. shale producers can make money. Some companies have said that they would be fine at $50 and some even at $40 oil but the energy sector has seen investors frowning even prior to oil tumbling to the worst 1-day move since 1991 whenContinue Reading
ECB (European Central Bank) will cut interest rates on Thursday, weakening EUR. Federal Reserve will cut interest rates March 18 weakening USD and strengthening Gold. Economic Stimulus to be announced by Trump today which will help US equities as well as Gold. Markets are starting to trade based upon fundamentalsContinue Reading
Wall street indices had another up week with S&P500 finishing in the green for it’s 5th week in a row (longest streak since March) …And Nasdaq ended higher for 6th week in a row (Longest streak since May). While many are ecstatic about Wall Street in record territory, few areContinue Reading