Tuesday, November 24, 2015

Hang 'Em All Time High: "Buy The Fucking Terrorist Attack"

The riskiest time in modern history and zero risk is priced in, all because today's Idiocracy discovered the secret to effortless wealth - printing money to buy stocks. "It's amazing no one thought of it sooner..."

The Jedi Mind Trick for stunned dunces aka. Hotel Californication
Fed balance sheet (red) with interest rates (green)

The central tenet of Elliot Wave Theory is that Social Mood drives markets and then "events" follow. Market declines are then attributed to proximate events by the media, even though the decline began long beforehand. As we see on the long-term chart (logarithmic), the market bottomed close to significant adverse events such as Pearl Harbor and the Iraq War. The market bottomed the exact day the Iraq War started, whereas it bottomed about 5 months after Pearl Harbor. In other words, the market "priced in" risk ahead of time and then bottomed close to the event.

Skynet doesn't know about Elliot Wave Theory...
Unfortunately due to seven years of central planning for billunaires absolutely NOTHING is priced in at the moment as any blind man can see (below). The headlines keep getting worse and all of it gets ignored...

No geopolitical risk
No economic risk
No financial risk
No resource risk

We live in a zero risk fantasy wonderland. 

The last time risks were this high and sheeple were this oblivious, was...1929:

Option skew (50 dma) all time high i.e. out-of-money bets on major collapse i.e. by Goldman Sachs & Friends...

Minimal hedging (index put/call) 20 dma aka. Unhedged funds with "Other People's Money"...