Sunday, January 8, 2017

BTFD: Buy The Faustian Dow

The Anti-Christ has driven record stock inflows for two months straight, all to celebrate his widely-embraced reign of unfettered corruption...

And in what can only be described as biblical irony, Trump's planned tax cut for the ultra-wealthy will implode the globalized ponzi scheme, just in time for Davos 2017, and Trump's official inauguration as the last emperor, Circus Clownius...

"U.S. equity ETFs have had inflows on all but six trading days since the U.S. presidential election, and the buying volume has been by far the strongest we've ever seen"

"Fund flows tend to be a good shorter-term contrary indicator, so the post-election buying spree bodes poorly for U.S. equities."

Bueller? Bueller?

The Anti-Christ gets full credit:

Trump's planned tax cut for the ultra-wealthy drove the chasmic divergence between stocks and bonds which will result in violent mega-crash, as money flows out of stocks back to bonds...

Consumer staples / bonds:

You know, like this:

Consumer sentiment (red) with Kohls Department stores



The Nasdaq and S&P closed at new all time highs today and the Dow made a new intra-day high today albeit below 20k...which puts this into perspective:

Number of stocks making new 52 week highs all U.S. markets:

Breadth oscillator

Money flow
This indicator doesn't measure the amount of cash piling into stocks, it measures the amount of price movement relative to volume. When price movement is low relative to volume it signals outflow...

Hedging relative to last January. Or not...

Index put/call:

Four weeks and counting: