Friday, February 12, 2016
1929 DEJA VU: The Promise of the Joker and the Fool
Today's (short-covering) rally in bank stocks courtesy of JPMorgan CEO, Jamie Dimon, who bought 500k shares yesterday:
"JPMorgan Chase CEO Jamie Dimon plunked down $26.6 million of his own money on Thursday to buy his bank's recently battered shares."
"On October 24, 1929, "BLACK THURSDAY," this massive sell-a-thon began. By the late afternoon, wealthy financiers like J.P. Morgan pooled their resources and began to buy stocks in the hopes of reversing the trend."
But the bottom fell out of the market on Tuesday, October 29. A record 16 million shares were exchanged for smaller and smaller values as the day progressed. For some stocks, no buyers could be found at any price. By the end of the day, panic had erupted, and the next few weeks continued the downward spiral. In a matter of ten short weeks the value of the entire market was cut in half. "
It won't take 10 weeks. We have Skynet...
Oil (2 day % change, lower pane):
S&P (red) with oil
JPY with 10 Year Treasury Yield
Bonds were right again. A casino, is not an economy...
The double death cross does not give up its dead...
Posted by Mac10 at 10:00 PM