Daily Shot on US profit contraction, Crude Oil & more

Daily Shot Brief, April 21

Just a reminder, you may want to bookmark and keep an eye on this excellent daily info dump. Below are a couple of items from the most recent DSB linked above. I have no affiliation with this site other than as a reader who sometimes presents quality destinations for his own readers.

This one reminds us that profit margins had already been in contraction before the COVID-19 excuse to flood the system with liquidity. In fact, we (NFTRH) were on a theme of mania upside termination with future downside potential on SPX to 2100. Now there is obviously a recession in process but that bearish input is fought tooth and nail by Fed/Treasury robo-printing on demand.

You have all heard that people are theoretically paying other people to take this asset off their hands (Hello Boone? Hello Martenson?* Hello PEAK OIL!!! pumpers of all stripes?). Here’s a visual. This crude oil destruction is what pictures look like when something breaks. It’s ultimately not going to be confined to crude oil and the violent graphs we’ll see in the future will not all be pointing down.

crude oil

* You may or may not have seen or remember it but I do; Chris Martenson began his journey to widespread notoriety with the “Crash Course” and its scientific talk about “hockey sticks”. Except that the hockey sticks he presented for assets like oil were going in the other direction from the first one above. It was hyper inflation that was going to do it. Well, now it’s the other ‘flation’ and the hockey sticks went the wrong way. Undeterred, alarmist promoters will simply re-tool the message.

Subscribe to NFTRH Premium (monthly at USD $35.00 or a discounted yearly at USD $365.00) for an in-depth weekly market report, interim market updates and NFTRH+ chart and trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar and get even more by joining our free eLetter. Follow via Twitter @NFTRHgt or StockTwits.