In Surreal Oil Market, Nomura’s McElligott Asks: ‘What Is The Utility Of The Futures Contract Itself?’
When abstraction collides with the tangible…
When abstraction collides with the tangible…
‘Guidelines’, new bubbles, and potential regime changes out of recessions.
“Now of course this is all coming into the expected ‘peak COVID’ shock”…
“…despite everybody knowing this is just the beginning of a horrific few months of data to come.”
So much to backstop, so little time.
“Many aspects of this crisis have played out in-line with our prediction”.
“…USD funding pressure continues to mount despite the positive optics of the coordinated global CB FX swap line actions”.
“Peak calamity”. Now what?
“CTA ‘trigger’ levels for equities will increasingly matter again”…
The ever-present COVID-19 tape bomb risk notwithstanding…
And yet, through it all…
Stability breeds instability.
The last few days have made the unthinkable suddenly thinkable.
And, as an aside, “Bernie Sanders matters”.
What could bring back September’s shock reversal?
“Doing their thing”.
Once we get beyond the virus, we’ll be back pondering the same, familiar dynamics.
This makes the market especially “vulnerable” to good news.
Spoiler alert: His longer-term outlook is unchanged. Near-term action will be “just another swing in the pendulum”.
Let’s keep things “edgy”, shall we?
Just another example of why it’s crucial to understand the dynamics driving the price action.
Back to the future, as “slow-flation” trades are once again en vogue.
Lions, tigers, bears… it hasn’t mattered.
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