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


BancFirst




Micron: Semiconductors


Westmoreland Coal