Friday, May 20, 2016

How Collapse Gets Done: Eyes Wide Shut

Wall Street's latest fake mantra is "not as bad as expected". Which allows the mannekins on CNBS to claim that every company "beat" estimates, which were lowered every day during the quarter...

"Alright, we'll call it a draw"

This week, the Fed shocked Global markets by saying that the economy *may* reappear after 7 years' absence. They gave no details on how that could happen.

In response to the tacit breaking of the "Shanghai Accord" to weaken the dollar, the Chinese weakened the Yuan the most since the last time markets broke in January.

The RISK ON commodity, oil, and Emerging Market rallies all reversed

"Defensive" recession stocks were the weakest overall sector

The Global Dow declined to the August lows

HFT broke on average volume

Retail stabilized at lower levels thanks to "not as bad as expected" numbers out of Walmart:

Global Dow

Chinese Yuan


EM Debt and currencies rolled over this week:

Rydex cash balances inverted:

In other words, all of the critical risk factors coalesced and got bought near the all time high this week...