My 15 year old son and I went to the NY Hedge Fund Roundtable event on the energy sector at the Penn Club last week. It's good to have your children see you perform. The discussion surrounded the price of oil, LNG and the impact Elon Musk is having on the oil industry.
Stephen Schork of the Schork report was the standout personality of the panel (buyside vs sellside panelists) basically echoing what yours truly has been telling you.
Submitted by Jeffrey Snider via Alhambra Investment Partners,
As one veteran trader told us, this massive short-squeeze came "out of nowhere," seemingly driven by oil-headline-induced algo momentum ignition. Goldman's "Most Shorted" stocks are up a stunning 6% in the last 2 days - the biggest 2-day surge since Oct 2015 as Credit Suisse noted earlier there is a "lot of pain being felt out there on the short side."
The face-ripping surge has sent "Most Shorted" stocks back into the green for the year...
Yesterday's strong 3Y auction was a harbinger. Despite the relentless risk on rally, moments ago the US Treasury had no problems to sell $20 billion in 10 Year paper which priced at a high yield of 1.765% (98.5% allotted), stopping through 1.6 bps through the 1.781% When Issued, the biggest gap since last spring, and well below March's 1.895%.
The bid to cover jumped from last month's 2.49, rising to 2.75, well above the 6 month average, and the highest since January.
At the start of the month we focused on what is set to soon be the new buzzword in economic circles: staglation. Specifically, we referred to the the explicit and inverse correlation between corporate profits and employee wages.