Citi: Here Comes The V-Shaped Rebound In Oil

Start buying oil.
That’s not only this morning’s recommendation by Dennis Gartman but, as this afternoon, also Citi’s commodities team (led by OPEC’s impressario Ed Morse) which moments ago issued a report according to which crude oil markets will not only bottom, but more importantly, “investors should position now for a potential V-shaped rebound in crude oil prices, as price risk seems asymmetrically skewed to the upside.”
Do two wrongs make a right? But we digress…
Citi explains the recent collapse (which it did not in any way anticipate as it was bullish all the way into a bear market), by noting that WTI flat price has sold off another ~5% this week, as bearish sentiment continued to prevail among oil market participants. However, it counters, “both weekly and monthly storage data are pointing to a tighter market by end-2017, and Citi expects global oil stocks to draw ~200-m bbls to year-end. While it is possible for prices to dip even lower near-term, we do not view this as sustainable, and once market sentiment turns, prices could rally sharply.”
Some additional observations from uber-bullish Citi on the crude vol surface:

This post was published at Zero Hedge on Jun 22, 2017.

EU Political Class Rides Roughshod over Citizens’ Concerns & Frustrations as it Pushes Integration

2017 has been a surprisingly kind year for the European Union – so far! Staunchly pro-EU candidates not only survived the gauntlet of national elections in France and the Netherlands but emerged triumphant. The once-imminent threat of political populism is now on the wane, we are led to believe. As if to prove that point, even the UK government is struggling to preserve a united front to see out Brexit after recent elections delivered a hung parliament.
The governments of the EU’s two core nations, Germany and France, appear to share a unified sense of purpose. Merkel has expressed a willingness to go along with two central French demands – the appointment of a Eurozone finance minister and the creation of a common budget – as long as certain conditions are met. ‘We can of course think about a Eurozone budget as long as it’s clear that this is really strengthening structures and achieving sensible results,’ she said.
Ms. Merkel’s surprise overture, however qualified, suggests the stalled process of EU integration could kick back into life sooner than most experts had expected. Particularly surprising is the timing of Merkel’s comments, coming as they do ahead of make-or-break general elections in September.

This post was published at Wolf Street by Don Quijones ‘ Jun 22, 2017.

Trump: “I Did Not Make Any Comey Tapes”

Update: President Trump confirms he did not make a tape of his conversation…
Having teased the world, and bluffed Comey and his Democratic Party supporters about the possibility of recordings of his conversations with the former FBI Director, Bloomberg reports that a ‘source familiar with the matter’ confirms that President Trump does not have any tapes.
Trump raised the possibility of tapes in a strategic fashion to ensure that Comey told the truth, said the person, who spoke on condition of anonymity.

This post was published at Zero Hedge on Jun 22, 2017.

Peaking Summer Stock Market

US and global stocks remain in a secular Bull market. Major averages from around the world confirm the strength we see in our country boosted by strong earnings and guidance. Tech stocks have trounced value companies and sentiment is neutral in spite of the lofty stock valuations, allowing room for more euphoria. There is an interesting shortage of non-commodity resources without inflation and rising interest rates. Record highly compensated job openings, low unemployment, and a severe housing shortfall should be hallmarks of an overheating economy with credit tightness that starts to stall the economy. Yet, the economy is growing less than most expansions, interest rates are falling, consumer credit risks are low and the worry will be deflation if Oil falls under $40.
Our Dow and SP targets for our ideal summer 2017 medium term top are close to being reached. Dow 21,400 – 21,800 and SP 500 Index 2440’s to 2480 remain our ideal maximum objectives for 2017. After 2 quarters in a row where S&P 500 Index earnings reached new record levels, there may be some upside staying power as we enter the 2017 2nd Qtr’ reporting season from mid-July to late August. We were bold in assuring there would ‘not’ be any deep corrections to buy bargain stocks throughout the rallies since last November. However, any further new highs from here into our time and price zone for a potential 2017 peak will require close attention for ebullient sentiment and other warnings flags. Corrections into the 3rd quarter should be limited to 5 to 10%, depending upon when and where an important top arrives.

This post was published at FinancialSense on 06/22/2017.

JUNE 22/GOLD AND SILVER UP TODAY DESPITE THE ANTICS OF THE BANKS/CHINA’S SHADOW BANKING SECTOR IN TROUBLE AS FIRMS ARE TERRIBLY LEVERED TO DESTRUCTION/ISRAEL SENDS WARPLANES TO DEFEND THE NEW CRO…

GOLD: $1248.60 UP $5.10
Silver: $16.55 up 18 cent(s)
Closing access prices:
Gold $1250.50
silver: $16.56
SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
SHANGHAI FIRST GOLD FIX: $1263.33 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: $1253.85
PREMIUM FIRST FIX: $9.48
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
SECOND SHANGHAI GOLD FIX: $1262.39
NY GOLD PRICE AT THE EXACT SAME TIME: $1253.50
Premium of Shanghai 2nd fix/NY:$8.89
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
LONDON FIRST GOLD FIX: 5:30 am est $1251.40
NY PRICING AT THE EXACT SAME TIME: $1252.20 ??
LONDON SECOND GOLD FIX 10 AM: $1250.80
NY PRICING AT THE EXACT SAME TIME. $1252.50 ????
For comex gold:
JUNE/
NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 7 NOTICE(S) FOR 700 OZ.
TOTAL NOTICES SO FAR: 2628 FOR 262,800 OZ (8.174 TONNES)
For silver:
JUNE 21 NOTICES FILED TODAY FOR
105,000 OZ/
Total number of notices filed so far this month: 978 for 4,890,000 oz

This post was published at Harvey Organ Blog on June 22, 2017.

A Turdless A2A

For your listening pleasure and to pass the time while we watch miners show a bit of strength this morning.
A conversation between two weary metals investors, Pining for the Fiords and Dr. Jerome:


This post was published at TF Metals Report on June 22, 2017.

A Rigged Game

76 years ago, ‘Joltin’ Joe’ DiMaggio was in the middle of the hitting streak of streaks that would come to 56 consecutive games and which has remained a major league baseball record to this day. That season (1941), the Yankee Clipper would bat .408 during the epic streak or more than 4 hits for every 10 at bats. Ted Williams, of the Boston Red Sox, had the highest batting average in 1941, hitting .406 for the entire season.
What would you say if I told you that a batter had hit 1.000 for an entire season? Or that a pitcher threw no-hitters every time he played a game? I’m pretty sure you would say that’s impossible or that something was definitely wrong. And, of course, you would be correct – somethings are too impossible or outlandish to be true. Not just in baseball, but there are limits in almost every endeavor.
Therefore, I wouldn’t blame you if you questioned what I claim is the winning streak of all winning streaks in trading COMEX silver futures. Data published by the CFTC, the federal commodities regulator, indicate that JPMorgan and two or three other large financial institutions, have never taken a loss, only profits on every single silver trading position they have established over the past nine years and, in fact, for a lot longer than that. You can question what I claim all you want, but do yourself a favor and make sure you question me deeply enough – please don’t let me off the hook easily.

This post was published at SilverSeek on June 22, 2017.

Here Is The Full Text Of The Republican Healthcare Bill

What's next for the ACA marketplaces? Two more important dates, which @bjdickmayhew described to me perfectly. pic.twitter.com/nlyey0lRvb
— Bob Herman (@bobjherman) June 22, 2017

Update 2: Here is a live feed of Senators offering up their initial reactions:
Lindsey Graham is encouraged…
GRAHAM SAYS LIKELIHOOD OF GETTING 50 VOTES FOR HEALTHCARE BILL “IS GREATER TODAY THAN I THOUGHT YESTERDAY”
…while Chuck Schumer is not…
*SCHUMER: SENATE NEEDS MORE TIME THAN 10 HOURS TO DEBATE BILL
All very shocking.

This post was published at Zero Hedge on Jun 22, 2017.

Confronting the Unspeakable

“Those who are at present so eager to be reconciled with the world at any price must take care not to be reconciled with it under this particular aspect: as the nest of The Unspeakable. This is what too few are willing to see…
Be human in this most inhuman of ages; guard the image of man for it is the image of God.”
Thomas Merton, Raids on the Unspeakable
‘A true opium of the people is a belief in nothingness after death – the huge solace of thinking that for our betrayals, greed, cowardice, and murders that we are not going to be judged.’
Czesaw Miosz
‘We can believe what we choose. We are answerable for what we choose to believe.’
John Henry Newman
They house people in deathtraps. They poison the drinking water. They financialize and corrupt almost every otherwise beneficial social institution from public education to healthcare. They foment endless wars for the pursuit of their own power and profits.

This post was published at Jesses Crossroads Cafe on 21 JUNE 2017.

The Fed Is Now Preparing For The Next Economic Crisis, Here’s How – Episode 1313a

The following video was published by X22Report on Jun 22, 2017
Sears Canada decided to announce that it will be declaring bankruptcy, approximately 3000 people will lose their jobs. Warren Buffett steps in and purchases Home Capital Group, big surprise since they were on the verge of collapsing. Junk bonds are signalling the great debt binge is now coming to an end. The Fed announced that will start to unwind its balance sheet, why now? The obvious reason is that the bubbles are at the top, its time to unload and prepare for the next economic crisis.

James Comey Visits The New York Times

Just hours after President Trump admitted he did not record any of his conversations with James Comey, the former FBI Director was spotted entering The New York Times office, in Times Square, NYC.
As The Daily Mail notes, Comey confessed to being the source of a leak to the Times about private, unorthodox meeting he had with the president before he was fired in June.

This post was published at Zero Hedge on Jun 22, 2017.

Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle

Tonight I would like to update a few ratio combo charts as several are at a crossroad, which may shed some light on where the PM complex may be headed next. A couple of the ratio combo charts worked out extremely well in calling a bottom in January of 2016.
Lets start with the TLT:TIP ratio combo chart we looked at recently which shows if we’re experiencing inflation or deflation. When the ratio in black is falling it’s showing deflation and when it’s rising it’s showing inflation. From the 2011 high the general trend has been for deflation. About a year ago you can see the black ratio was rising in a pretty strong move up, but late last year and the first part of this year the ratio topped out and has begun to fall. The red arrows shows how the ratio is reversing symmetry down over the same area on the way up. For the time being there isn’t much in the way of support.
At the bottom of the chart I added the CRB index and the GDX which also topped out in 2011 and have been trending down with the black ratio. If the TLT:TIP ratio keeps falling, will the CRB and GDX keep performing in a similar manner as they have since their 2011 bear market highs? The 30 week ema is the first line of resistance they will need to overcome followed by the top rail of the 2011 bear market downtrend channel.

This post was published at GoldSeek on 22 June 2017.

Sears Canada Announces Bankruptcy; Fires 2,900

Update: Sears Canada was authorized to obtain financing of C$450 million. The bankrupt company said it would close 20 full-line locations plus 15 Sears Home stores, 10 Sears Outlets and 14 Sears Hometown locations; it would also cut 2,900 positions across retail network, corporate head office in Toronto.
* * *
It’s official – the US ‘retail apocalypse’ has moved north as Sears Canada (and some of its subsidiaries) have applied to Ontario Superior Court of Justice for protection under the companies’ Creditors Arrangement Act (CCAA), in order to continue to restructure its business.
Sales at Sears Canada have fallen sharply since it was spun off from its equally-troubled US-based parent in 2012; the slump coincides with a broader shift in consumer preferences away from brick and mortar retailers and toward e-commerce.
This shouldn;t come as a surprise to anyone, in an admission last week, Sears Canada said it has ‘significant doubt’ that it can continue to operate for much longer. Meanwhile, its American counterpart announced that it would lay off 400 employees as part of an initiative to produce $1.25 billion in savings after admitting back in March that the future of its business is also in serious jeopardy, as Fortune reported.

This post was published at Zero Hedge on Jun 22, 2017.

Why You Need To Own Physical Gold & Silver In 2017 | Stay Ahead Of The Curve – Golden Rule Radio

The following video was published by McAlvany Financial on Jun 22, 2017
You need to own physical gold & silver in 2017! By diversifying your portfolio into tangible metals on a regular and consistent basis, you protect your wealth from governments and central banks. These governments, central banks, & bail-in policies are destroying the currency you have worked so hard for. Every day fiat currencies lose more and more value. Be ahead of the curve and begin adding precious metals to your portfolio today. We’ll cover the price movements of Gold, Silver, Platinum, Palladium, The DOW Jones Industrial and the warning signals that the DOW Transports are showing; look for a correction in the future. Crude oil down again signals further weakness that investors need to be aware of. Thanks for listening.

British Buy Gold in Wake of Election Uncertainty

What did Brits do before the recent elections in the UK?
They bought gold.
According to the Financial Times, gold sales soared 87% as uncertainty kicked in on election day earlier this month. As prospects of a hung Parliament loomed, ‘panic-stricken’ investors converted their sterling into gold.
The election results were a disaster for the majority Conservative party. It ended up with a net loss of 13 seats with 42.4% of the vote. Labour made a net gain of 30 seats with a 40.0% vote. The results cast a cloud over the complex task of making Brexit a reality.
There was a similar rush into gold in the UK leading up to and after the Brexit vote last year. One gold company CEO reported some people converted as much as 40 to 50% of their net worth into physical gold in the weeks after the UK voted to leave the EU.
Pure Gold Company CEO Josh Saul said the scene was similar on election day June 8. He stayed open until 10 p.m. taking orders.

This post was published at Schiffgold on JUNE 22, 2017.

Data Says Fed Is Making A Mistake

In their policy announcement last week, the members of the FOMC claimed:
‘Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year.’
Economic data has continued to remain extremely soft given the rise in confidence. We addressed previously that while the ‘soft data’ was hitting the highest levels seen since the ‘Great Recession,’ actual economic activity had failed to catch up. As noted on last week:
‘For the 13th straight week, US economic data disappointed (already downgraded) expectations, sending Citi’s US Macro Surprise Index to its weakest since August 2011 (crashing at a pace only beaten by the periods surrounding Lehman and the US ratings downgrade). The last time, Us economic data disappointed this much, Ben Bernanke immediately unleashed Operation Twist… but this time Janet Yellen is hiking rates and unwinding the balance sheet?’

This post was published at Zero Hedge on Jun 22, 2017.

Trouble In (Chicago) River City! No Buyers for Chicago School Bonds Causes Rates to Hit 9%

The Illinois fiscal crisis continues. But it goes beyond the State. The Chicago Board of Education is also having trouble raising funding. Their municipal bond rate has soared to a whopping 9%! And that is for a variable rate bond that matures in 2032.
(Bloomberg) – Chicago’s school system is paying bond-market penalties similar to those seen during last decade’s credit crisis.
The junk-rated district, reeling from escalating pension costs and fallout from the Illinois budget gridlock, has been stuck paying punitive interest rates on $167.5 million of adjustable-rate bonds after PNC Capital Markets failed in March to resell the securities once previous owners sold them. The rate on the bonds, which are supposed to stay extremely low because investors can resell them to banks periodically, jumped to a maximum 9 percent on March 1 from 4.64 percent the week before and has stayed there ever since, according to data compiled by Bloomberg.

This post was published at Wall Street Examiner on June 22, 2017.