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Chesapeake Plummets Over 20% On Report It Has Hired Bankruptcy Attorney
8
February, 2016
The
saga of the gas giant Aubrey McClendon's built, Chesapeake Energy,
enters its endgame, when moments ago following a Debtwire report
that the company has hired Kirkland and Ellis as its
restructuring/bankruptcy attorney - typically a step taken just weeks
ahead of a formal Chapter 11 filing - the stock has plunged 22% to
$2.40, the lowest price in the 21st century, and for all intents and
purposes, ever.
In
a few weeks we will see just how many banks were properly
"provisioned" for this now imminent bankruptcy that may
just unleash the default wave so many have been waiting for.
Jaw-Dropping Indicator Last Seen During Great Depression Just Hit An All-Time High!
8
February, 2016
On
the heels of the Dow plunging nearly 400 points at one point during
today’s trading session, and with gold surging and oil falling,
today a jaw-dropping indicator that was last seen during the
Great Depression just hit an all-time high!
But
first, let’s start with an important quote from last Friday:
“I
continue to be somewhat surprised that all the destruction that has
occurred in the stock market thus far hasn’t led to a wide open
break, but the pressure continues to build and I think a big
dislocation is as close to a certainty as those things can ever be. I
realize that is a pretty bold statement on my part, as such events
are quite rare, but in this case it is a virtual slam dunk, for
reasons I have reiterated many times.” — Bill
Fleckenstein 2/5/2016
A
portion of today’s note from Art Cashin: “Most
of Asia closed as we begin the Year of the Monkey. Japan rallied but
Europe opened down and got worse. Yields are falling on both sides of
the pond. Dollar firming but gold has a decent bid. U.S. futures
reversed lower on the very weak opening in European markets. Oil is
under pressure as WTI struggles to hold at $30. The FANG superstars
are under very real pressure again. Fed Fund futures put likelihood
of a March hike at 11%.
Consensus
– Crude weakness likely to weigh on stocks. An S&P break of
1857/1861 could target the January low of 1812. Worries on European
financials doing some equity damage. Stay wary, alert and very, very
nimble.”
The
following chart and commentary was
published by King World News on January 25, 2016:
“With
the Gold/Oil ratio recently stretched to extremes by
hitting 70-year highs, and having only been at this level during
the Great Depression, we may finally be seeing the long-awaited
bottom for crude oil prices (see
remarkable chart below that now includes data going back to 1920).”
But
look at what just happened today…
Jaw-Dropping
Indicator Last Seen During Great Depression Hits All-Time High!
If you look at the stunning chart below, you will see that the Gold/Oil Ratio just hit an all-time high today!
If you look at the stunning chart below, you will see that the Gold/Oil Ratio just hit an all-time high today!
If
you look carefully at the two charts above, you will notice
that the Gold/ Oil ratio just took out the previous high that was
last seen during the Great Depression. Meaning, gold is
trading at an all-time high vs oil. So now we are seeing the
price of gold soaring in both foreign currencies and oil.
The
next major move will be against the last holdout — the U.S. dollar.
When that takes place it will mark the end of the latest gold
suppression scheme and it will also mean gold has started the
next leg higher in its secular bull market that will see the price
smash through the previous high all-time high of $1,920.
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