WTI/RBOB held gains overnight following API's reported crude draw (despite the gasoline glut) but after DOE confirmed a 5th weekly crude draw and 6th weekly gasoline build, algos were confused with prices chaotic. Production hit a new record high.
North Sea and Canadian crude supply disruptions are suppressing U.S. imports and encouraging exports.
API
The bond market is talking, but no one is listening.
As I explain in my bestselling book The Everything Bubble: the Endgame For Central Bank Policy, the yield on the 10-Year US Treasury bond is the single most important interest rate in the financial system.
This is the “risk free” rate of return… the rate against which ALL risk is measured (stocks, commodities, corporate bonds, mortgages, etc).
With that in mind, take a look at the following chart.
Authored by Pater Tenebrarum via Acting-Man.com,
Read Part 1 here...
Contradictory Signals
Special antennae that help traders catch upcoming opportunities. Available from the same outfit that sells the soup-cooling spoon (Acme Inc).
Following strong starts/permits data but weak mortgage apps (biggest drop in 3 mo), existing home sales broke the tie with a yuuge beat, surging 5.6% MoM (against expectations of a 0.9% jump)...
...to the strongest pace of sales since December 2006.
The median existing-home price for all housing types in November was $248,000, up 5.8 percent from November 2016 ($234,400). November’s price increase marks the 69th straight month of year-over-year gains.
Sell the news... again...
Nasdaq is now red on the week again...
VIX crashed to 8.90 as cash markets opened...
30Y yields back at the Nov 1st FOMC level...
Some are suggesting the extremely rapid long-squeeze in Treasuries is triggering Risk-Parity unwinds...