Business

Hedge Funds covered their short oil bets by the most in 11 months last week. CFTC data shows managed-money short positions dropped 25,639 contracts last week, sustaining a 26% rally off February lows. In April 2015, WTI rallied over 20% off its lows amid the same short-covering squeeze, only to collapse 40% in the next 3 months (despite OPEC hope and calls for stability). Oil ETF shorts have also capitulated back to "normal" long-short ratios suggesting oil has seen "peak" short-covering.

Futures shorts covering in size...

As you might have noticed, China’s economic miracle has turned into a nightmare - and it’s dragging the entire world into one big, bad dream characterized by a deeply entrenched disinflationary impulse occasioned by the country’s acute overcapacity problem.

Submitted by Eugen von Bohm-Bawerk via Bawerk.net,

As we wrote early yesterday when we summarized the outcome of the first day of China's National People's Congress (NPC), China failed to deliver any of the major stimulus programs the market was expecting.

Yesterday, when reading the latest note by JPM's "Gandalf" head quant Marko Kolanovic, we noted something strange: for the first time we observed a JPM quant not only commenting on such sensitive topics as social fairness, but daring to challenge the oligarch orthodoxy implying that Buffett is wrong that "the babies being born in America today are the luckiest crop in history."

This is what he said: