More Maladjusted Economy Alerts

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#1 Russ Winter

Grizzly Bear

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Posts: 1,020
Joined: 01-March 09

Posted 02 February 2012 - 01:19 PM

-Government Motors (GM) reports that January inventories are now the second highest ever. GM’s January sales were off 6% YoY. This to my thinking is quite maladjusted considering that actual driving measured by gasoline use is tanking (chart 2).

-The prop of 99 week extended unemployment continues to plunge, with 57, 255 falling off in the last week. Last there were 898,042 recipients, now it’s 474,252.

-The MIT survey shows inflation more restrained since QE ended. However, it takes little to set it off, and commodity prices are now moving higher, even though the economy is weaker.

Followup on nat gas: drawdowns are bit larger than expectations despite warm weather. I suspect fields may be aging. Although one of the big nat gas drillers, CHK announced major cutbacks in activity, as did some other firms, the implementation is probably going to take time. Baker Hughes rig count is still 777. only down 3 from previous week. As a reminder my entry point into NG October futures is under 2.75 and under 750 rigs.

The most heavily shorted names in the Russell 3000 registered move that were twice the Russell 3000 as a whole.

Source: Zero Hedge

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