“Davidson” submits:
The daily rate chart shows that rate surge causes correction in issues with extreme pricing with WTI rising to mid-$70s. Algorithms set to trade on price-trends do not act uniformly. Some shorted oil briefly in response to the growth stock correction but this was a short-lived event.
You can see a little blip higher in the US$. This is due to weakness in the Euro not EmgMkts. Investors are again pouring capital into US. Likely due to concerns of an energy crisis there because they went all in for wind turbines which now prove unreliable energy producers with no wind. This shows an ‘Allice in Wonderland’ political mentality globally. It is the belief one can legislate technological innovation by narrowing society’s means of economic growth. Then, out of the blue, the weather did not comply. Who would have guessed humans did not control the weather?
We may see a tighter relationship between $WTI and rising rates. Those who short $WTI to protect growth portfolios may jump on the rising $WTI trend as inflation becomes more an issue of concern. At the moment backwardation shows expectations of lower $WTI in out-years. Look for a shift to contango to reflect this shift in market psychology. Those who believed they could legislated their imagined world into existence are coming up against reality.
Those who desire control of other are fearful of everything they cannot control. It is a personality that does not connect with the reality of the world to a degree the rest of us do this. How the physical world works and how individuals find common cause is lost to them leaving them anxious, paranoid and wanting to both control and destroy that which makes them anxious. These personalities have grabbed control of governing institutions. These are the people who form unions to control uncertainty they experience. They want life without risk or strife and they want it to stop evolving in directions they cannot control. These are individuals who fear the future and fear those who do not show that fear.
They at the moment demand everyone ‘get the jab’. But, if they get their way they will turn around and institute another restrictive control mechanism. In the current $3.5-$5Tril spending pkg is a provision to fine companies $700,000 per employee not vaccinated. Incredible!!
This is only a note to you with a few thoughts. I will not send this out as too many still do not recognize the issues these personalities pose and would think I am crazy. Some in the public are beginning to develop this level of thinking, but we still have a long way to develop the level of general understanding necessary to deal with it on a sustained basis.
