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Wednesday, December 13, 2023

The Biden Charts -- A Short Squeeze Of Epic Proportions -- December 13, 2023

Locator: 46298INV.

I’m unable to post graphic at this time, but apparently the Dow was up 512 points at the close, crossed 37,000 for first time ever. 

More later on this historic day.

Tag: Cramer Santa Claus rally Fed JPow exuberance inappropriate. Or: “I was right.”

 





 

Weekly EIA Petroleum Report -- December 13, 2023

Locator: 46297EIA.

Weekly EIA petroleuim report, link here:

  • US crude oil in storage: 2% below five-year average; decreased by 4.3 million bbls; 440.8 million bbls
  • imports: 1.6% greater than same four-week period last year
  • refiners: 90.2%
  • distillate fuel: 12% below five-year average -- where it's been for years
  • jet fuel supplied: up 1.2% compared to same four-week period last year

PPI: Unchanged, Comes In Better Than Expected -- December 13, 2023

Locator: 46296ECON.

From CNBC

Wholesale prices were flat in November, providing a leading indicator that inflation is easing.
The producer price index, which measures a broad range of prices on final demand items, was unchanged for the month, following a 0.4% decrease in October but less than the Dow Jones estimate for a 0.1% gain.
On a year-over-year basis, headline PPI accelerated just 0.9%, after peaking above 11.5% in March 2022. [Can CNBC say "transitory"?]
Excluding food and energy, the index also was unchanged against an estimate for a 0.2% increase. Excluding food, energy and trade services, PPI increased 0.1%, posting a sixth straight increase and good for a 12-month gain of 2.5%.

Personal investing: bought NOG today.

RACE: I haven't looked at RACE in a long time. Let's check in. RACE is down today. One year ago we all had the same information.


What's In Your Portfolio? December 13, 2023

Locator: 46295ECON.

What would investors think if there was a headline today:

  • US Steel to build 100 new steel-manufacturing facilities this year

Or:

  • GM to build 100 more EV-manufacturing facilities this year

But instead we get:

  • Oracle to build 100 new data centers.

And that's just Oracle. Imagine what Facebook, Google, Amazon, others are doing.

4th Industrial Revolution.

ARKK vs BRK.

Twenty-years from now.

What's in your portfolio?

SNOW?

Area Under The Curve -- December 3, 2023

Locator: 46294ECON.

Updates

December 13, 2023: Powell's explanation

Area under the curve.

Original Post 

"Area under the curve." It continues to explain a lot.

Market Opening -- Wednesday, December 13, 2023

Locator: 46293INV.

Market: seventh week of gains -- if we get a seventh week of gains in a row that will be the first time in six years (needs to be fact-checked) -- but the point is --- well, you know what the point is.

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Misery Index

Misery index: yawn. Link here. Color me "shocked." I never knew the "misery index" was still such a big deal but if you a search on "X" you will see how big a deal the "misery index" still is.

As for me I never paid much attention to the "misery index." It was a campaign slogan, a meme at best. 


I would argue that the degree of misery was much, much worse during the French and Indian War, the Revolutionary War, the US Civil War, WWI and WWII, just to name a few periods in which life for most Americans was quite miserable.

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More

OPEN:

  • Dow: down 17 points
  • Nasdaq: up 35 points
    • AAPL: up another 83 cents
    • CVX: up slightly
    • NVDA: up $2.70
    • MSFT: up $2.55
  • and, that, folks is my portfolio.
  • the best thing I ever did was get serious about investing, starting in 2020.

Pet peeves, investment:

  • the Buffett is god meme; see chart of the day below
  • ETFs: another scam

Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.

Again, all my posts are done quickly. There will be typographical and content errors in all my posts. If any of my posts are important to you, go to the source.

WTI: $2 away from a 52-week low and gasoline still well over $2 / gallon.

  • what gives?
  • that's called "services inflation"
  • two components of inflation:
    • services
    • product
  • services inflation will be stubborn
  • services inflation includes retailer shenanigans

Chart of the day: ARKK -- Cathie Wood (68 years old) vs Warren Bufffett (93 years old) -- one year ago we all had the same information. 

With current investment philosophy -- if both Cathie Wood and Warren Buffett (and his successor) stay the course, respectively, ARKK will blow away BRK over the next 25 years, when Cathie Wood will be same age as Warren is now. Exactly.

See disclaimer above.

Buffett: by the way, can't sell HP fast enough. He's pretty much out of his HP position. CNBC ignores the story. Of all consumer product companies of which I interact, my least favorite is HP. I saw this ten years ago; amazed how long it took WB to see it.

Buffett portfolio watch: link here. Seldom updated any more. Lost my interest in BRK when I started posting "Chart of the Day.

Looks Like The Theme For Today Is "There's A Huge Disconnect" -- December 13, 2023

Locator: 46292EVS.

Updates

December 14, 2023: counterintuitively TSLA shares are up and doing very well following JPow's speech. So, apparently I'm wrong -- see original post -- the US EV market is going to do just fine. Betting against the US EV market is like trying to predict the price of oil: both are fool's errands.

Original Post

The disconnect:

  • COP28: phase out crude oil
  • EVs: dead

EVs:

  • US government out to "kill" Tesla?
    • two-million car recall
    • almost all models sold in US 
    • has to do with crashes, death, 
    • Cramer trying to spin this: not so bad; just a software update
  • Tesla's tax credit for buyer goes away
  • EV fad is over (yet another article)
  • GM, Ford broke cardinal rule in marketing
  • Morgan Stanley: EV growth report; LOL; obviously written by a 20-somethhing intern
  • after two decades of EV marketing, the few EVs in our apartment complex are still a curiosity;
  • we're no longer seeing stats on lack of second-time EV buyers

Tesla tax credit, link here:

So, whatcha gonna do -- Plan B? No EVs and phase out crude oil. What's Plan B? LOL.

Yeah, you guessed it.

Two Wells Coming Off Confidential List -- December 13, 2023

Locator: 46291B.

WTI: $68.83. At least it's "green" today.

Thursday, December 14, 2023: 19 for the month; 168 for the quarter, 738 for the year
39292, conf, Hess, GO-TONG TRUST A-157-96-2032H-2,

Wednesday, December 13, 2023: 18 for the month; 167 for the quarter, 737 for the year
39716, conf, Petro-Hunt, Joel Goodsen 149-102-32C-29-1H, 

RBN Energy: our take on OXY's planned $12 billion acquisition of CrownRock.

It may be considerably smaller in scale than the recent ExxonMobil/Pioneer and Chevron/Hess megadeals, but Occidental Petroleum’s announcement that it will acquire privately held CrownRock LP for $12 billion is remarkable in its own right. Among other things, the deal will give Delaware Basin-focused Oxy a strong foothold in the absolute core of the Midland Basin, supercharge its free cash flow and — despite increasing Oxy’s debt in the short term — provide a pathway for the company to return much more money to shareholders via dividends and stock buybacks in the years ahead. In today’s RBN blog, we examine Oxy’s planned acquisition of CrownRock and what it means for the acquiring company and the Permian itself.