Fri, Feb 19, 16
08:45 ET Update: [Stockboardasset] S&P futures +22bps
08:45 ET Update: [Stockboardasset] Nikkei +277bps
08:45 ET Update: [Stockboardasset]FTSE100 -53bps DAX +118bps
We warned yesterday of the artificialness of the global equity index recent advancement as central bank members generate conversation to manipulate market participants perception of reality. FED Williams was the recent member to speak as he told market, we can’t pull the rug out from the economy right now. Over the course of this week, mutable FED members have acknowledge WTI and USD are generating woes for the US economy. The Global Equity Index is comprised of major markets around the world have halted the 5 day advancement forming an evening star. We believe there will be a retracement of the recent advancement. US Markets have advance near +700bps in a week’s time as forced short covering was produced by OPEC. Coincidently, the SPX tested and rejected 1.272 extensions of the entire bull cycle as support. We learned our markets continue to be highly manipulative as the overseers of the wave function spew nonsense i.e. OPEC. OPEC’s perfect placement of their comments at 26 and range bound of 30 via comments depicts pure manipulation. 4% of the global producers <35 will be below breakeven as the likely hood of WTI rotating the low 30s for an extended period of time is high. We do see improving fundamentals in place for 2H16 in the US Rebalancing, but a dark spot in the refinery sector. Just recently, the market saw the fire sale of WTI from 30-26 as PSX dumped Cushing for immediate delivery. Rumors of an OPEC emergency meeting in the March Timeframe.