Elsewhere on the home page, I’ve updated my forecast for crude oil to reflect a new target at 63.79 for the December NYMEX contract. Far from producing a devastating price shock, Wall Street and the financial world would see it as a godsend, since any whiff of inflation these days is ostensible evidence that The System has once again escaped the fatal pull of deflation. It is all but certain to overwhelm us eventually for reasons I have spelled out here many times over the years — just not when crude is flirting with prices above $60 a barrel.
Crude-Price Gusher Is Answered Prayers for Banksters and Wall Street
- November 7, 2017, 8:11 am
CL commercials are at 10 year high in ‘sales’, as in late 2007 and then 2008. At 1st then it was a positive backdrop for the stock market but the run to cover by commercials went towards the extremes in price, causing great harm for the stock market.
The same happen at the same time period with the EC market as they commercials where at 10 year high in shorts, the run to cover because its the commercial size positioning is always more extreme.
When observing COT, Spec,large and small, one likes to be on the size of the COT but some times they are observing something that may have been in place but had already turn the corner such as I would suggest in the CL market.
Today’s USA and Japan 2017 trade deficit again picture, as in late 1985.
2-10 Yield Spread; Yield Curve Flattens to 10-Year Low.
Here it comes.