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.
Monday, January 23, 2017
The Trump Dump Has Begun aka. Coiled Mega Crash
I just read this article pondering whether or not stocks are set up for a 2011 style waterfall plunge. The only indicator they use is momentum. I think we can do better, starting with the fact that this is not 2011... First, the chart of the week and it's only Monday: No, they don't see it coming this time...
Where was I...something about not being 2011: Dow Relative Strength (Momentum):
Here is where it gets interesting:
The S&P is pounding 2260 on ever tighter fractals:
U.S. Markets Highs - lows 20 dma:
% of stocks above 200 dma:
The Nasdaq is desperately clinging to the upper trend line...
Google led the Nasdaq today, like it did at the last two tops...
The xlp / tlt ratio shows the rotation from dividend stocks back to bonds attending each crash: