Did TPTB Crash Oil?

Without a doubt, there were plenty of fundamental reasons for oil to crash.  For an excellent summary, check out Jesse Colombo’s June 9, 2014 (as in you had ample warning) article HERE.

I’m also fond of the notion that it had a lot to do with the yen carry trade [what’s this?]  In order to sell the BoJ on devaluing the yen and, thus, supporting the YCT, The Powers That Be had to make it politically acceptable.

The cheaper the yen gets, the more expensive oil (which is priced in USD) becomes.  Remember, Japan was already reeling from higher energy expenses in the wake of the Fukushima disaster.  CL had been steadily climbing ever since the nukes went offline.

What better quid pro quo than to crash oil prices in exchange for the BoJ crashing the yen?

2016-02-23 Did TPTB Crash OilUSDJPY rallied from 101 to 107, and SPX rallied from 1911 to 2134.  It had the added benefit of thumping the oil producing countries’ and Russian economies.

Tin foil hat, stuff?  For sure.  But, it’s an interesting thought…

*  *  *  *  *

Final 24 hours for our membership promotion…  If you’re tired of taking cues from perpetually bullish talking heads, this is a great time to take the plunge.  Volatility is high, and we’re racking up some great results [see: HERE.]

Pebblewriter.com has provided uncannily accurate market guidance since our first post on May 2, 2011 where we noted a top was close (May 2 was the top) to our latest top call on May 19, 2015 [we were one day early, see: The Last Big Butterfly] and our latest bottom call on Feb 11 [see: USDJPY Finally Relents.]

We’re currently offering Charter Annual memberships for about half-off the usual price.  With a Charter Annual membership, your rate is guaranteed never to increase for as long as you’re a member.  For more details and to sign up now, CLICK HERE.

Comments are closed.