Thursday, January 26, 2017

Obliteration Time @ Dow $20 Trillion

I was reflecting on 2008 and how few people saw it coming, albeit parts of Wall Street made bank on the collapse. And I thought about now, and how few people see it coming this time including Wall Street. On the surface, this rally is "stronger" because the major indices keep making new highs. However, under the surface, the exact same carnage is occurring as it did in 2008. Central Banks have made risk management impossible for active money managers - this time, shorting is not an option...

% of S&P above 200 day moving average:

Here are some bellwether stocks across all major sectors:

Qualcomm: Semiconductors

Brinker Restaurants
(Chili's, Maggianno's etc...)

Avis rental car

Target: Retail

Bristol Myers: Pharma

Biogen: Biotech

Invesco: Financial Asset Management

Macy's: Retail

Whirlpool: Home appliances

Late cycle stocks in blow-off mode i.e. the stocks holding up the major indices...

Norfolk Southern: Railways


Micron: Semiconductors

Westmoreland Coal