Oil prices rallied yesterday following the EIA weekly data and are up further today. Despite the rise in US inventories (4.1 mln barrels) more than four times greater than expected, participants focused on other details.
The astonishing surge in leverage in late 1999 peaked in March 2000, the same month that the S&P 500 hit its all-time daily high, although the highest monthly close for that year was five months later in August. A similar surge began in 2006, peaking in July 2007, three months before the market peak.
As the tentacles of the central planning octopus reach ever more forcefully into more corners of the economy, the free market is inevitably in retreat. But nobody seems to notice or to care.
The market is now waiting for Janet Yellen’s first news conference as the Fed Chairwoman this afternoon. The weak start to the Q1 earnings season with underwhelming reports from FedEx (FDX), Oracle (ORCL) and General Mills (GIS) will also attract some attention.
Last week, towards the end of a very lively and comprehensive roundtable discussion on gold, Financial Sense Newshour host Jim Puplava asked his guests whether they thought the gold market was being manipulated. Of the three responses, CPM Group’s Jeff Christian was the most interesting