Ponzi World (Over 3 Billion NOT Served)

The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.

Friday, February 5, 2016

MARGIN CALL: Hedge Fund Liquidation Time

Team Groupthink is getting liquidated

The hedge funds that survived last year were the ones that crowded into growth momentum stocks and shorted industrial stocks. Now those trades are going in reverse. A clear sign of liquidation...

There's no reason to buy Caterpillar, unless you were short it and told to liquidate...Freeport McMoran, Cummins etc...

The entire Materials sector is bid. For now...

Meanwhile Tech Momentum stocks are getting annihilated...

LinkedOut: -40% today

Cloud names getting hammered
Salesforce.com:

Netflix - 37% from the highs...

Amazon - 27% from the highs...

The short covering is temporary, the liquidation is only beginning.

Next come the averages.