Saturday, October 1, 2016

The Idiocracy Doesn't Believe In The Truth

The CNBS standard disclaimer:
"The situation conjures dark images of the 2008 financial crisis — with the important caveat that the overall risks are nowhere near as great now as they were then."

The week started off with Hillary Clinton lauding the Obama pseudo-recovery:
"...Now, we have come back from that abyss. And it has not been easy. So we’re now on the precipice of having a potentially much better economy"

Followed exactly one day later with the WTO downgrading 2016 trade by -40%, to the lowest level since 2009
"The dramatic slowing of trade growth is serious and should serve as a wake-up call"

Next the world's most leveraged bank imploded on 20x average volume:

And European banks faced an epic collateral shortage:

On Monday, the Bank of Japan finally admitted they have no fucking clue what they are doing

The massively overowned yield sector lagged badly all week and then mid-week, stock market liquidity fell off a cliff for no apparent "reason". Fortunately it bounced off the trend line on Friday...

Oil staged a colossal short covering rally on news of an OPEC output increase, followed by a 'possible' freeze in November if no members cheat. 

This coming week is when U.S. Oil inventories (red) "bottomed" out last year, and the big leg down started.

Also this past week, the U.S. rig count hit a 7 month high...

Saudi Arabia devaluation bets exploded amid a depressionary budget deficit of 15% of GDP:

Saudi stocks:

Bond and stock correlation reached a record high

Big Cap Tech went late stage parabolic

Late this week, China's Yuan was officially added to the IMF reserve currency basket. Which means that they can stop pretending that the currency is actually stable...

"If anything, the risk is that official intervention to keep the renminbi stable ahead of its inclusion will subsequently be paired back, allowing for renewed deprecation"

This week my hometown was listed as the biggest fucking bubble in the entire world. And we also learned that the average Canadian is $200/month away from insolvency. Because absolutely nothing was learned in 2008: 

And shorts covered to save the quarter. What else?

In other words, the S&P trendline had to be saved at all costs, being the only economic metric that matters to CasinoConomy.

The trendline has been tested six times on the daily, since mid-September, but who's counting?