Friday, January 20, 2017

Not My Anti-Christ

Trump has so far monkey hammered Emerging Markets, global bonds/interest rates, EM stocks and currencies, global housing markets, China and Mexico. This week he took down the dollar and bank stocks, meaning he is coming full circle taking down his own election rally, like any blundering clown would do...

And so far he has demonstrated a real feel for those who are doing the heavy lifting...

Day 1: I Clownius

Which gets us down to the business of this blog aka. mega crash shoved straight up the ass of the Idiocracy and their realtor-in chief at the point of maximum pain, which would be right now...

There have been 3 limit down crashes in the past 18 months: The Chinese currency revaluation August 2015, Brexit June 2016, and Trump November 2016. All bought with both hands, a different leading sector each time. Post China reval it was the FANG stocks, post-Brexit it was "low volatility" dividend stocks, post-Trump it has been Financials and all things junk.

Which means there is no sector left to rotate to, and hence the next rotation will be from stocks back to Treasury bonds and "cash", leaving a no-bid market.

This is the state of the largest capitalization S&P stocks, in order of market cap:




Berkshire Hathaway

The most over-owned stock #1:



Johnson & Johnson

By far the strongest relative strength is JP Morgan which nevertheless took a -3.5% pounding this week...

Wells Fargo

Honourable Mention

Second most overowned stock Alibabylon

Largest Dow point contributor, and head of U.S. Treasury

Goldman Sachs

Down -5% this week:

Last, but not least...