Authored by Lance Roberts via RealInvestmentAdvice.com,
In Tuesday’s post, “A Shot Across The Bow,” I discussed the recent “Tech Wreck” and the warning sign that was delivered when trading algorithms begin to run in the same direction. To wit:
“The plunge was extremely sharp but fortunately regained composure and shares rebounded. A ‘flash crash.’
For the 22nd week in a row, the number of US oil rigs rose (up 6 to 747) to the highest since April 2015.
Given the historical relationship between lagged prices and rig counts, we suspect the resurgence in rigs may begin to stall...
Oil is headed for the longest run of weekly losses since August 2015 as OPEC member Libya restored production and the surplus in the U.S. shows little sign of abating.
Over the years many have accused central banking of being the world's latest (and most profitable) religion, with central bankers the only modern day priests left that still matter (to the tune of $75 trillion, the market cap of all stocks in the world).
Earlier this week we discussed a chart from Citi's Hanz Lorenzen, which we said may be the "scariest chart for central banks" and showed the projected collapse in central bank "impulse" in coming years as a result of balance sheet contraction, and which - if history is any indication - would drag down not only future inflation but also risk assets. As Citi put it "the principal transmission channel to the real economy has been...
Well that escalated quickly...
This morning's Amazon acquisition of Whole Foods Market has collapsed share prices of many grocers (in US and around the world), pharmacies and drug distributors, and even REITs...
First things first, 11 of the top 12 biggest losers in the S&P 500 are related to AMZN's move...
It's a bloodbath in US Retailers...
But it's not just US Retailers... European Grocers are crashing too...