Mass shootings, fentanyl suicides, industrial-scale human trafficking, biblical climate change, de facto global slavery. Life in a human toxic waste dump. One clown to rule them all. Looking back at past decades, Disney Trump was a step migration along America's journey from land of opportunity to land of opportunism:
"Opportunism is the conscious policy and practice of taking advantage of circumstances – with little regard for principles or with what the consequences are for others."
Label: Caveat Emperor
This decade kicked off with a bailout for Wall Street to punish them for collapsing the global financial system. And appropriately it's ending amid rampant fraud and corruption "as usual".
All Ponzi schemes end when the last fool is found. This one is no different. If you don't know who the cuck is when you're sitting at the poker table, then it's you.
It appears to have been long forgotten that no one implodes casinos better than the Game Show Host in-Chief
I just perused Jimmy Kunstler's latest defense of I, Clownius: The Emperor Strikes Back. As always a great storyteller. He astutely sidesteps Trump's grand canyon character deficit while completely ignoring the glaring incompetence. Getting straight to the main point that these attempts by Democrats to overturn the illegitimate election, are illegitimate. Then he sums it all up by saying that the collapse of DonnyLand is imminent. More pablum for brain dead zombies being led down the road to Perdition by today's con men.
Which sadly sums up the state of politics at this parlous juncture - two sides concerned solely about power struggle while ignoring the deleterious effects of two years of unfettered corruption.
The sum total of this past two year vacation from responsibility will be viewed in hindsight as: the creation of a mega bubble; a borrowed tax cut for the ultra-wealthy; Higher interest rates for the middle class; A disastrous trade war that started off with fake concern over the trade deficit and one year later metastasized into an hegemonic cold war with no exit strategy; Deregulation of Wall Street; Non-stop attempts to kill middle class healthcare; The elimination of the EPA; Fracking in every corner of the country; Record non-war government deficit. All while senile jackasses inform us that violent collapse is the booby prize for the demolition of democracy.
Third World class in every sense of the term.
Keeping the Dow pinned to all time highs by every machination possible - from Central Bank money printing to leveraged stock buybacks was the secret to keeping this con job going and going and going. Until it reached a self-fulfilling sugar high, based upon the realization of massively lowered expectations fueled by non-stop bullshit.
A two year vacation from responsibility, now ending badly
“The April durable goods report was bad, particularly the details relating to capital goods orders and shipments. Coming on the heels of last week’s crummy April retail sales report, it suggests second quarter activity growth is sharply downshifting from the first quarter pace”
The inventory channel stuffing to make the first quarter is downshifting:
Retail earnings were a complete disaster this past week, with blow-ups from Kohl's, Nordstrom, JC Penney, Lowe's, Foot Locker, and Urban Outfitters:
15 year high consumer sentiment is now "driving" GDP growth of 1%, 4% of which is borrowed money. An honest man would call that a recession.
We've never seen anything this fraudulent:
The right wing hates AOC with an unbridled passion, because even though she has an infinitesimal fraction of the power of Trump, she has the power of inception. And like Bernie Sanders, she knows a con job when she sees one:
“And that would effectively increase the stock price, right? And I’ve done nothing to change my company, right? Nothing to make my product more valuable, my employees happier, I haven’t invested in training for the workforce to make the company inherently more valuable, but I’ve inflated the stock price,” she said. “How is this different than a pyramid scheme?”
Don't forget, buybacks also allowed insiders to cash out of the pyramid scheme, at the very top.
"Last chance to get out before they realize we scammed them in the first quarter"
"They ignored AOC, because they placed their faith in criminals instead. The rest is history"
Label: Smash Crash 2019 In Progress
The past week summarized.
Markets crash when too many dunces believe what is inherently false. Because they are in no way positioned for reality. So it is now, that the sheeple at large still believe Trump when he says that trade wars are "good and easy to win". Notwithstanding over a year of inconvenient truth to the contrary.
Because ironically, the country that prides itself on freedom of speech is now run by a sociopathic liar:
In other words, while the Dumbfuck-in-Chief is telling his base that the trade war will end imminently due to China capitulation, China's leader is telling his people the truth, which is to prepare for a long fight.
It's clear that the Creator had in mind extreme humiliation prior to ending this Roman Circus:
Remember October's Hindenburg Omens? They warned of what was to come. A Hindenburg Omen merely means significant (> 100) new highs and lows at the same time. An unusual occurrence that often portends a top.
This time around, too few stocks are making new highs to trigger the warning. Which contrary to ubiquitous belief, is not bullish...
At today's low, the S&P had retraced the entire trade war bounce which was rejected at the 50 day. The rest of the world is already making a new low:
The Nasdaq is leading the way down as momentum names get crushed:
Treasury bond shorts are getting annihilated as ten year yields are at an 18 month low:
The big carnage today was in oil which broke the 200 day on convincing volume. The war with Iran can't come fast enough to offset the trade war-induced global glut. Oil bulls heading for a margin call.
"If there’s one person who’s enjoying the trade war with China, it’s Donald Trump"
EMs, new low
The usual denialistic wishful thinking based upon data mining the recent past.
Looking at a broader timeframe than the one in the article and we see that the market is not oversold at all.
Speaking of BTFD:
This is the 20 day moving average of overnight gaps, which have been bought with both hands in the U.S.:
Got long weekend risk?