I remember $0.17 on the gallon in Vene__the GOV gives it away as a political tool!
That 'Is in no-way a deflation indicator'. You as an economic analyst continue to miss the target. The current global energy pricings are a factor of supply over-running demand__that is not the same as; lack of demand growth. Yes demand pull has slowed.
This was a classic opp to buy in2 large Integrated Oils at a good yield. Could they go lower__yes__if crude busts $40 on the downside__Buy the Integrated. If one agrees that this is an oversupply condition__then the "buy in' is the "Refiner Transports".
You can get 500 gallons of gas for $1.00 US dollar, today in Venezuela, a new high in dollar purchasing power. They only take cash, everything else the exchange rate is much lower, especially common stocks are going for a penny on $1,000 face value.
Cash is King, in Venezuela, 0.2 cents buys a gallon of gasoline, or $1.00 buys almost 500 gallons.
This is no joke, this is the truth. Fill up in Venezuela, use US dollars and buy 25 gallons of gasoline for 5 cents right now, today, no car wash required, no club membership, this is pump price US cash deal in Venezuela today.... for 50 us cents you get 250 gallons of gas, and for a cool $1.00 US you get 500 gallons of gasoline. Thank the lord, deflation is finally here. Watch for the 95-99% off sales coming to a retailer near you.
In the interim, a string of currency devaluations has pushed down the cost in dollar terms to levels that would seem implausible to consumers in other parts of the world, even after the recent oil tumble cut prices at the pump.
The CHART OF THE DAY shows it now costs about 0.2 U.S. cent (that’s right; one-fifth of a penny) to buy a gallon of gasoline in Venezuela, based on black-market currency rates. Expressed another way, you can get 482 gallons with just one dollar. That’s enough to drive a Chevrolet Silverado pickup truck from one end of Venezuela’s 1,740-mile-long Caribbean coast to the other six times.
It’s a perk the government may no longer be able to keep doling out to its citizens as the collapse in oil exports pushes the country to the brink of default.
“They are basically bankrupt” and “cannot afford” these kinds of subsidies anymore, Siobhan Morden, head of Latin America strategy at Jefferies LLC, said in a Jan. 23 interview.
It isn't clear what will happen shortly. We know the financial markets are pushed to extremes by FED induced speculation. With speculators massively short the now deeply distressed euro and yen, with equity margin debt still near record levels in a market valued at more than double it pre-bubble norms and with several major Euro banks running at gross leverage ratios comparable to Bear Stearns and Lehman before the 2008 crisis, we are seeing an abundance of "leveraged mismatches" (one-way bets) using borrowed money, that permeates the entire colon of the financial system. With market internals and credit spreads very negative, while Treasury Yields and oil and industrial commodity prices sliding in a manner consistent with abrupt weakening in global economic activity..........IS THE SHOE READY TO DROP.....?????
I got a $2 loss right now, still holding. I did buy some BP at $37 to hedge this which is at $40. All in all, I am flat to slightly ahead, almost like holding my money in a MMA at 1%. I still thing a TBT purchase at $40 will tick up to $45 when FED speak comes out with rates going up. I could be wrong also, there is risk.
yes--rates are skyrocketing across the globe as the global economy continues to expnd at a breakneck pace!! Oil will be a $200 any day now---oh wait, I have my charts upside down. Never mind.
"I pray for more deflation and gas prices to $1.00 by July 4, 2015"__how are U going to measure this__unleaded futures or average US pump prices?
If the latter__it is not going to happen.
The recent play has been short diesel/ long unleaded. Diesel downdraft pricing is catching up due to prior refining constraints. Once this refining supply catch-up has processed__unleaded will have bottomed and be on a seasonally marginal upswing.
"A REIT must annually distribute dividends (other than capital gain
dividends) to its stockholders in an amount at least equal to the
„.90% of its “REIT taxable income.”
„.90% of its after-tax net income, if any, from foreclosure
minus the excess of the sum of certain items of non-cash
income over 5% of its REIT taxable income (known as the 90%
distribution requirement) (see IRC § 857(a)(1))."
How does leave "less money" for distributions___the only way would be if they would otherwise__had distributed greater than the 90% minimum!
Why would you think this time will be any different from your last approx 2 and 2/3 years of suggesting shorting the ten year??
Oh, Oh, Oh___I know "Time Must Be On My Side_eventually"
Since when did Schwab start offering brokering in "Financial Futures"?? Because that is the only way one can 'short' the "Treasury". With all ur continued posting__you might obtain at least a minimum of credibility if you were to post the correct terminology and post accurate info.
Since I know ur amatuer history__u r thinking of using an ETP (Exchange Traded Product); such as, 'TBX' or ‘TYNS’. The correct 'terminology' is "I am tempted to back up my brinks truck at Schwab and go long an inverse 10 year exchange traded product". Do not ever think those products are an actual 'Short' or an efficient method to accomplish that. Anyone who does__does not understand 1). the creation and dissolution of 'ETP Baskets' and 2). tracking error between the 'target to be accomplished' and the ETP product marketers' manufactured comparable.
For example: u wish to short the 10 Year Treasury. There 18 currently offered inverse ‘Bond/Treasury’ ETPs. The only non leveraged offerings are the two I posted above. They attempt to target 7-10 year range. That is not equivalent to shorting the 10 yr. The reason they create these false indexes and targeting range is due to (again) the creation/dissolution of baskets and the fact that only a novice or a restricted account would use these ETPs instead of the actual Futures and Futures Options.
There are professional ‘IRS’ work around(s)__for those in an account restricted from “Series Three” brokerage access. However, an ETP may be the only access vehicle. Unless a 1 to 3 day ‘Swing Trade’____avoiding a leveraged product is prudent.
"Hence, my algorithm said I can buy TBT at 42.00 - 42.50 and play the 10 yr. spike up in interest rates for a few days or weeks. I am almost up 5% for two days. This is good money with very little risk."
Klumps: Please update us on your TBT call.
More than 150 years, after the last shot was fired in that terrible conflict called the Civil War, we appear on the Abyss of a terrible conflict to end the "peculiar institution" of enslaving human beings to decades of enslavement to the banks, creditors and the central banks. But now, Global World Currency War has been declared, and it looks like everyone is involved. Americans of all ethnic groups are being enslaved again, this time by something that most have not seen coming, but with some enlightenment from the enlightened one, will see that 80% of the world has been enslaved to debt. Central Banks have been able to enslave the masses by promoting QE, Zero Percent Interest Rates, and Money Printing in order to saddle them with debt and an existence owned by others - throughout the world. Every single person is enslaved by debt, even the 20%, because the governments of the people and by the people have allowed their elected leaders to sign and promote an expansion of the national debt beyond the ability of anyone to pay it back, and this includes future generations. The only way out of this is a total collapse of prices, where wealth is returned to the indebted through lower prices and deflation. I pray for more deflation and gas prices to $1.00 by July 4, 2015. .