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.

Thursday, February 4, 2016

The Recession Rotation Before the Shitting of Bricks

The recession trade is on in full force. Momentum gets sold and defensive stocks get bought. Short covering across the entire industrial sector.

Short covering also ahead of tomorrow's jobs report.

We've seen this movie before, but we're pretending we don't know the ending...

All world index

With KMB:SPX ratio
(Kimberly Clark/S&P)

Canadian stocks:

Equal weight / cap weight ratio:
When this rolls over, everything falls as one...

Global RISK OFF
One of these didn't get the memo...
Yen (red) with S&P

Next up: Hammer Time
Google is down -10% since becoming world's most valuable company for a day. Check out the rising wedge on the Wilshire (black) - it reminds me of August...but I'm pretending not to notice...

The entire momentum sector has rolled over. When that wedge breaks, shit gets real...
Nasdaq/S&P: