Business

The "short energy" trade worked great for a while and then, as we first warned in late January, just as everyone jumped onboard leading to record WTI (and oil and gas equity) shorts, it very suddenly stopped working in early February when oil proceeded to soar by 50% in the month ahead, leading to the biggest short squeeze on record and crushing all those who had recently gotten on the short bandwagon (as well as most other shorts).

Following last week's major surge in crude inventories, API reported a 2.6mm build (against expectations of a 3.1mm build) - 7th week in a row - which briefly jumped crude prices higher. A 319k draw at Cushing combined with draws in Gasoline (6th week in a row) and Distillates left oil pushing back to late-day highs.

API Details:

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

Wall Street is counting its winnings from seven years of easy money.

 

The results represent a clear victory for Wall Street over Main Street, according to the team of Michael Hartnett, BofA’s chief investment strategist.

 

Bwuahahahaha....

Another day in the "markets... Silver & Gold the big winners post-Yellen - oops!

As we have said before - there is one simple rule...

We will be the first to admit that in the current centrally-planned world, where nothing but the words and deeds of central bankers matter, fundamentals, seasonals, technicals and charts are a laughable anachronism from days gone by when the market - as traded by humans and not vacuum tubes with laser beams - could drop 10% without the Federal Reserve collapsing into a panicked mess.

However, there are those who still believe that what used to work in the past still does, and trade according to the patterns observed in the Trader's Almanac.