It seems all the yammering about oversupply in crude oil is meaningless (as, it seems, 99% of the worries posted on ZH turn out to be). Crude has been strong for a solid month now, and it has since vaulted over its descending trendline.
As China ascends to the top global economic superpower (leaving the U.S. permanently behind, in spite of visionary leadership from the likes of Joe Biden and Nancy Pelosi), the chart of the stock markets from the middle kingdom are breathtaking. It sort of reminds me of the divergences that took place in 1999/2000 between big global markets, some of which were stratospheric while others had already topped out. This is only going to feed the frenzy of retail excitement in China, as their citizens continue to jump into equities feet-first.
In spite of today’s rally-from-nowhere, the Dow Transports continue to make obscene gestures toward the bulls and defy the retard-o-ramp. Soaring energy prices aren’t helping, but more importantly to my eyes is the pattern that is breaking down.