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With WTI prices back below $50, it appears stocks and NOPEC production are trumping any OPEC hype/hope and today's Baker Hughes' rig count merely adds to those concerns. For the 13th week in a row, the number of US oil rigs rose (up 5 to 688, the highest since April 2015).

• *U.S. GAS RIG COUNT UP 5 TO 167 , BAKER HUGHES SAYS :BHI US
• *U.S. OIL RIG COUNT UP 5 TO 688 , BAKER HUGHES SAYS :BHI US

Though the rig count iuncreased, it is the smallest rise in 3 months...

Authored by Irina Slav via OilPrice.com,

Last week, U.S. banks boosted the borrowing bases for several independent energy companies, lifting spirits in the industry. The move was taken as a sign that lenders are beginning to share in the optimism that oil and gas producers have been enjoying since the beginning of the year, with prices staying above $50.

By now everyone is familiar with the charts showing the tremendous growth of passive investing in general, and ETFs in particular, shown most recently in our discussion of how ETFs make markets dumber.

To be sure, everyone is also quite familiar with the mutant permutations of the above assets, such as inverse and 2x or 3x levered ETFs, whose only function is to fleece retail investors with unprecedented theta, including ETFs on VIX, essentially making them the modern day equivalent of Synthetic CDOs so familiar from the peak of the last financial crisis.

Following February's 3.9% drop, March existing home sales roared back (up 4.4% MoM - the fastest growth since Dec 2015) to the highest since Feb 2007 at 5.71 million SAAR. Inventories tumbled (for the 22nd month in a row) and prices rose (for the 61st month in a row) as affordability issues remain ignored (for now).

It seems, unlike 2013, that rising rates are not affecting demand for existing homes at all... (yet)

The Details

Regional and Large banks have done well since the election. Of late they have lagged the broad market and find themselves testing what could be very important support levels. Below looks at regional bank ETF (KRE).

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