Which Way Wednesday – Yentervention Edition

As expected, the BOJ intervened this morning.

Not as expected, they didn't do much, merely increasing their existing asset-purchase program to ¥80T ($1.01Tn) from ¥70T, and lengthening the program by six months to the end of 2013.  This is, of course, having very little effect on the Dollar, which barely managed to hang on to 78.50 yesterday, but should be bottoming out around here nonetheless.  The weak dollar did not prevent oil from heading even lower, touching our $94.50 target this morning as the only explanation NOT discussed by the MSM – that oil trading is a fraud on committed against the the American people – is the one that is explaining the action perfectly:

Note there are still 83,374 contracts, representing orders for 83M barrels scheduled for delivery to Cushing, OK in October.  Yesterday there were 98,376 open contracts so just 15M barrels were flushed in yesterday's session but it took 181M barrels worth of trades to get rid of them and there are only two sessions left before the NYMEX crooks are stuck taking delivery – so of course they are panicking.  

Aside from the fact that they don't want the oil in the first place (they just churn contracts to create the impression of demand to excuse the 50% mark-up on crude they line their pockets with), it's not even physically possible for Cushing, OK to process more than 40M barrels in a month.  Isn't it interesting then, that there are already 317M barrels on order for November, when 90% of those barrels physically can't be delivered.  YOU are paying for that, not the traders.

IN PROGRESS