Monday, June 9, 2014

BTFATH - Buy The Fucking All Time High (Again...and Again)

A graphic reminder of what happens when ponzi schemes implode. They collapse instantly and spectacularly, leaving faint remnants of their existence. $33 trillion in global stimulus and 520 interest rate cuts still haven't restored the jobs, median income levels, or economic activity from 2007. This has been the most expensive con job in human history, without any comparison...

A Fed-addicted market that only goes up due to bad economic data, will collapse with extreme dislocation. Today's greed-addled investors are oblivious to all risks.

The Almighty Dow
Broadening Top:
"In the broadening top formation five minor reversals are followed by a substantial decline."

The Globalization Bubble: Largest bubble in human history
Three strikes, you're out...

Some Perspective
Dow adjusted for inflation

(Sector) Correlation = Annihilation
Correlation between Semiconductors and Energy shown in lower pane (for those who think this is an optical illusion)

T-Bonds or Stocks?

Global Macro or U.S. Stocks?
$Canadian dollar, Brazil stocks, Copper, Russian stocks

Momentum Oscillator 

Cheap Junk Indicator
Wal Mart: Sale on Aisle 5

Spanish Stocks versus Euro

Big Money has already been selling:
TRIN (trading index) 200 DMA

Momentum and growth stocks still floundering
Parabolic charts always end badly. But don't take my word for it, here is what Kevin Marder from MW says with regard to momentum stocks "coming back" after this massive breakdown:

April 2nd, 2014: "Cash is the place to be for growth-stock speculators"
"It is also instructive to recognize two things. First, most big-winning stocks only stay big winners for one bull market. A relative few may go on to become an outstanding leader in a second bull cycle. But this is uncommon. Second, the average big-winning stock has dropped 73% after topping, according to one study of past bull-market cycles."

Nasdaq 100:

Nasdaq Composite with new 52 week highs:



Most people want to believe that there is a gentle way out of this lurching clusterfuck. However, that option was forfeited a long, long, time ago. Risk has now become binary, and as we see above, this intervening massively delayed-convergence with reality has only served to amplify risk to unprecedented levels in our entire lifetimes. This will all end faster and more violently than even I can possibly describe.

Remember: Nothing Matters Until it Collapses, so BTFATH...