Sunday, September 4, 2016

Global Social Mood Is Falling Hard

Following Brexit, global Central Banks went ALL IN to encourage risk-taking. It won't work...

Ironically, the London FTSE has the clearest wave count:



Not withstanding Central Bank reverse-engineering of greed, global social mood has peaked and is now falling. Which exacerbates the efforts of psychopaths attempting to encourage reckless gambling. Global markets ex-U.S. peaked weeks, months, and years ago. And even within the U.S. the last bubble has seen a preference for large cap "defensive" stocks, junk bonds, and municipal bonds. All of which are massively overvalued trades...

IPO Proceeds tell the tale of risk aversion:
http://www.renaissancecapital.com/ipohome/press/ipovolume.aspx





As I wrote last week, global housing markets are rolling over hard from London, New York, Miami, San Francisco, Dubai, China.

And this week we learned that Vancouver real estate tanked in August. There is plenty of denial, but both the median and mean price of homes has rolled over (click here)...




Europe and Japan are trading as one, enjoying a nice counter-trend bounce. Seen here with combined global QE assets (red):


Canada is in recession, but you would never know it from looking at stocks:

This portends badly:




The Australian market took the biggest hit this week:


And China is bringing up the rear:


U.S. retail stocks are screaming recession, but the lights are on and no one's home...




Speaking of social mood...
Smith & Wesson rolled over hard this week despite an earnings beat and news that FBI reports record gun sales in July:



In other words, every risk market in the world has peaked and rolled over, except U.S. stocks:


Which are held up by short-covering and a yield bubble that peaked 8 weeks ago...