Two years ago, there was nobody more bullish, or more apologetic of the poorly performing US economy than Deutsche Bank's chief US economist, Joe Lavorgna. Case in point: his Q1 2014 "explanations" why every negative print or consensus miss was due to the weather.
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Despite the day's rampacious rally in stocks and crude aftwer "unidentified sourtces" said a Russia-Saudi deal was done, Russia's Dmitry Peskov just issued a statement that "there is hope" for a deal at Doha. This sent stocks and crude jumping once again... even though we suggest "hope" for a deal is not "a deal."
With the ECB now unabashedly unleashing a bond bubble in Europe of which it has promised to be a buyer of last resort with the stronly implied hint that European IG companies should issue bonds and buy back shares, and promptly leading to the biggest junk bond issue in history courtesy of Numericable, it will come as no surprise that the world once again has a debt problem.
In the second massive short-squeeze of the year for Chesapeake 'speculators', the company of the verge of bankruptcy has exploded 35% higher today, perfectly tagging (to the penny) the 200-day-moving-average. Breaking above the McClendon probe/suicide "squeeze" rally highs, at $6.13, CHK is at 5-month highs... as 'modeled' CDS spreads collapse after the management was forced to pledge the entire company to maintain existing credit lines.
Oil & Stocks are back at 100% correlated today - what could possibly go wrong? Aside from the NYMEX Close and API data "event" risks...
As the headline sparked a face-ripping short-squeeze yet again...
Ramping all the way back to scene of yesterday's late-day crime...
Note the Nasdaq (orange) is not playing along with the machines today.