Well, the miners ended the day well, that's for sure.
And a swarthy fellow with a name that rhymes with "Blichael Blaoul" says the weakness in the US market is entirely the result of "the process of completing the 2014 allocation season". So, basically, "allocation season" means that amateur hedge fund clowns puke into an empty book for a few days so they can start anew, probably this time with the R2K and banking ETFs.
So we can short $VIX in a day or two. Good, noted.
Now here's some news:
Brett Steenbarger - OMGWEGONNADIE. He obviously hasn't heard of allocation season, since he's looking for other things to blame the weakness on. Anyway, he also notes whenever there's a large expansion in SPY shares outstanding, the market barfs for a couple weeks. OK, let it barf.
FT Alphaville - OMGCHINAGONNADIE. Do I really need to start a "China Doom 2015" topic? Because it turned out to have been a waste of topic space in 2014, 2013 and 2012.
This time around, Deutsche Bank seems to imply that the Chinese government are a bunch of fucking morons who have no clue how to predict land sales 6 months into the future - basically, that Xi Jinping and China's hundred thousand economics grads are as crushingly stupid as Deutsche's economy-destroying heroes Angela Merkel and David Cameron.
I put it to you that, rather, it's Deutsche Bank who are the fucking morons who can't predict anything 6 months into the future. Fuck off, Deutsche, you fucking clowns. Go back to committing Libor fraud and demanding special treatment under Basel III, it's all you're good at.
Gavyn Davies - demand side gains for the world economy in 2015. Here's the incomprehensible gobbledigook of an economist:
Lower oil prices and a more demand friendly fiscal/monetary policy mix should result in faster growth in aggregate demand.Which you can just ignore because you're busy barfing stocks because blah blah Doug Kass blah blah China dooooom.
Mining.com - Buttgold raises $3.5M from... wait, what? The hell is this, a gold-backed bitcoin? Is that it? Well, Sandstorm is one of the investors, so I expect Bitgold will run into a fatal dewatering problem or something sometime this year.
FT Alphaville - Izzy Kamizzy mocks buttcoin. Quote:
You’d think the community would have learned a lesson about investing money in totally unproven, opaque companies operated by individuals with little to no financial management experience?[cough] Galt's Gulch Chile [burp] ....
She also mentions that buttcoin was invented in Slovenia, which means it's now Slovenia's second most significant export after the pioneering industrial Nazi-parody band Laibach:
At least you can sell your used Laibach albums in a record store and use the money to buy food and shelter, unlike buttcoin.
Also, Laibach fans are significantly more intelligent, and more fun at parties.
The Gold Report - interview with the Cookie Monster! He's still ignoring me:
However, I'm not convinced there is, or will be, a gold supply problem that will translate directly into higher real prices that bail out the miners and their marginal deposits. Almost all the gold that has ever been produced is still available in some form or other and much of it potentially for sale at some price.Sigh. I guess you're getting old, Cookie, so I'll repeat it for you again, nice and loud this time:
So, unless there's a real run on gold, as well as gold hoarding, we may not see the gold price rise to compensate for less economic deposits.
70% OF ALL THE COPPER THAT HAS EVER BEEN PRODUCED IS ALSO STILL AVAILABLE IN SOME FORM OR OTHER AND MUCH OF IT POTENTIALLY FOR SALE AT SOME PRICE TOO.*
MEANWHILE, ONLY 25% OF GOLD DEMAND IS BEING MET BY RECYCLING.
QUIT PIDDLING YOURSELF.
Oh and by the way, here's a message for JT Long: we don't "sell in May and go away" in junior miners. You sell the day before PDAC, and sometimes buy back in June for a summer pop.
* - in fact, as noted here before, aluminium is now a far cheaper conductor to use than copper. And most of Vietnam and west Africa is rich in bauxite, so it's not like aluminium will go scarce if we substitute.