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As RBC's head of cross asset-strategy, Charlie McElligott, asks rhetorically in a note on Friday morning, “THE” question that every investor (across all asset classes and strategies) is asking remains this: when is “the gig up” with this reflation trade?, as we know this violent pace can’t last forever, and price trajectories in same cases exceed even the most optimistic expectations of the future state of the world. 

Here is his answer:

Submitted by Tsvetana Paraskova via OilPrice.com,

Chinese growth of crude oil imports may likely shrink by more than 60 percent next year, as storage facilities are filling in and smaller refiners face more scrutiny over taxes and licenses, according to a Bloomberg survey of analysts.

According to Energy Aspects analyst Michal Meidan, Chinese crude oil imports are expected to grow by 5 to 9 percent in 2017, compared to an estimated growth of 11 to 14 percent this year.

For the 25th of the last 27 weeks, Baker Hughes reports the oil rig count rose this week. With the biggest rise (+21) since April 2014 to 498, the highest since January 2016.

Signaling US shale production set to rise dramatically...

Stocks are going to Crash.

This wasn’t the case a mere six weeks ago. But the Bank of Japan has committed one of the most egregious manipulations in history.

The Yen/ $USD pair has imploded by over 14% in the last six weeks. The last time the pair fell this much the BoJ expanded an already monstrous QE program by $260 BILLION.

This time around it is nothing more than abject monetary devaluation. The Bank of Japan has accomplished in SIX WEEKS what previous took $260 BILLION and SIX MONTHS.