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Whipsaw Wednesday – Yesterday’s Gains Reverse Pre-Market

Wheeee, what a ride!   As we noted in yesterday's Live Member Chat Room , bouncing exactly to our predicted 4,350 line ( see yesterday's Morning Report ) on very low volume was nothing to get excited about and was actually considered a failure for the day – espeically as all the gains came at the open and we just puttered along from there .   Things began reversing right at yesterday's close and now we're back to Friday's lows and back to a technically failing market.  Oil ( /CL ) topped out yesterday at $79.78 and we put our foot down there as well getting into shorts at 12:12 in our Chat Room that averaged out at $79.08 and, already this morning, we're $4,000 and we'll stop 2 out over $78.50 and the other two at $78.75 to lock in gains but, hopefully, today's EIA Inventory Report sends us back below $77.50, for another $4,000 gain before that happens: Last night's API Report showed a "surprising" (to Economorons) build of 951,000 barrels for Oil, 3.7Mb of Gasoline and 2.5M barrels of Distillates – doesn't really sound like the strong demand picture Goldman Sachs, Barron's and other paid manipulators were trying to paint last week , does it?  For more insights, see the classic: " Goldman’s Global Oil Scam Passes the 50 Madoff Mark! "  See, it doesn't matter if we expose the scam – there's new suckers born every minute… Commodity prices in general are through the roof and, as you can see from this chart, it's a very strong indicator of a coming recession.  Why?  Because you get less stuff for more money – that's why.  How is productivity going to increase if you are getting less stuff for more money?  How will the economy grow when you are getting less stuff for more money?   Couple that with an INSANE Fed Policy that pretends there is no inflation during one of the worst recorded rounds of inflation in history – and you have a recipe for disaster which is why, last week, Elizabeth Warren called Fed Chairman Powell " The most dangerous man in America. "    Having 10% inflation and 0% interest means your cash is being devalued at a rate of 10% per …

Wheeee, what a ride! 

As we noted in yesterday's Live Member Chat Room, bouncing exactly to our predicted 4,350 line (see yesterday's Morning Report) on very low volume was nothing to get excited about and was actually considered a failure for the day – espeically as all the gains came at the open and we just puttered along from there.  

Things began reversing right at yesterday's close and now we're back to Friday's lows and back to a technically failing market.  Oil (/CL) topped out yesterday at $79.78 and we put our foot down there as well getting into shorts at 12:12 in our Chat Room that averaged out at $79.08 and, already this morning, we're $4,000 and we'll stop 2 out over $78.50 and the other two at $78.75 to lock in gains but, hopefully, today's EIA Inventory Report sends us back below $77.50, for another $4,000 gain before that happens:

Last night's API Report showed a "surprising" (to Economorons) build of 951,000 barrels for Oil, 3.7Mb of Gasoline and 2.5M barrels of Distillates – doesn't really sound like the strong demand picture Goldman Sachs, Barron's and other paid manipulators were trying to paint last week, does it?  For more insights, see the classic: "Goldman’s Global Oil Scam Passes the 50 Madoff Mark!"  See, it doesn't matter if we expose the scam – there's new suckers born every minute…

Commodity prices in general are through the roof and, as you can see from this chart, it's a very strong indicator of a coming recession.  Why?  Because you get less stuff for more money – that's why.  How is productivity going to increase if you are getting less stuff for more money?  How will the economy grow when you are getting less stuff for more money?  

Couple that with an INSANE Fed Policy that pretends there is no inflation during one of the worst recorded rounds of inflation in history – and you have a recipe for disaster which is why, last week, Elizabeth Warren called Fed Chairman Powell "The most dangerous man in America. 

Having 10% inflation and 0% interest means your cash is being devalued at a rate of 10% per
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