The stars at night are big and bright …
But all is not as it seems of course.
It’s great that Texas has brought suit for ‘illegal’ voting.
However, with eyes wide open, there could be more going on than just contesting an international vote-rigging scheme that has entrenched corruption on a grand scale.
The oligarch controlled medial of course puts their spin on it and plies its evil trade.
Texas of course would have to establish ground rules or structure for such action …. If that was to happen at the current pace of events … five years? Maybe faster.
A complete collapse and mass unemployment (with civil unrest … oh wait) would of course help things along from a public acceptance perspective.
Outlandish you say … complete insanity. Really?
How outlandish is an entire population running around with a piece of toilet paper across their face … afraid of something (the speck) that’s not even there. Even the CDC admits ‘no isolates [of the virus] are currently available [because it does not exist]’.
Go ahead … take a trip to your local graveyard. Where are the bodies?
By now, a real world-wide pandemic would have municipalities passing special measures (and taxes) to annex additional land to keep up with the dead. Back-hoe operators would be in short supply and a booming business.
Not happening; because it’s not there. The real story is here.
So, what about the markets?
Yesterday, the short positions in biotech were closed out as we got a higher open (not expected) instead of lower; even though bid/ask right up to the opening bell indicated a lower open..
IBB has now pushed past the 150-target area. There are no more forecasts for this sector. We’re at the target and no reversal … yet.
Moving on and giving credit where it’s due, Steven Van Metre, is the situation in oil.
With a huge economic slowdown (another collapse) coming, demand for oil is likely to vaporize yet again. Recall when the futures market went negative just eight months ago?
Oil prices may have been bid up on expected demand from a “re-opened” economy. That’s the current narrative.
What’s really going on looks like a short-squeeze that may have played itself out. The Weekly chart of XOP (oil/gas production ETF) shows upside progress has stopped dead.
Based on the weekly price action of XOP shown below, we’re short oil and gas via DUG; a position established late yesterday.
At this juncture there’s no hard stop (not advice, not a recommendation) but we’ll wait during the fist hour of the coming session to see how the hourly bar posts.
Last week’s high in XOP was 61.06. If price action pushes beyond that by any appreciable amount, we’ll exit inverse DUG.
Charts by StockCharts