While the focus in the overnight session has traditionally been about two things, namely oil and China, today one can also throw in AAPL which is down 4% in the pre-market after its disappointing earnings yesterday in which it confirmed our channel-checked warnings about China from last summer, and the Fed which is set to release the January FOMC statement this afternoon.
Submitted by Peter Schiff via Euro Pacific Capital,
Submitted by Dan Doyle via OilPrice.com,
Inventories will continue to rise, but the momentum is slowing.
The following are some observations as to how we got here and how we’re gonna get out.
9 reasons why oil has taken so long to bottom:
1. OPEC increased production in 2015 to multiyear highs, principally in Saudi Arabia and Iraq where production between the two added 1.5 million barrels per day (mb/d) to inventories after the no cut stance was adopted.
Earlier this month, China’s top stock regulator offered to resign after an experiment with a circuit breaker went horribly awry, triggering a series of harrowing selloffs on the SHCOMP that reverberated through world markets.
Five months ago, when we previewed the asset classes that we thought would benefit the most ahead of (and during) China's ongoing currency devaluation, and its accelerating capital controls, we laid out two things we are focused on: bitcoin and gold. This is what we said: