The best news for a profoundly stoned Idiocracy is that this rally is now supported solely by extraordinary amounts of exceptional bullshit...
Compliments of the fact that Wall Street is record net long:
First, so we're all on the same page - I'm not a blind devotee of Elliot Wave Theory however, I find the 3 wave retracement pattern to be highly reliable...it's a symmetrical three wave sideways pause overlapping the prior trend...
Exhibit A: Chinese stocks, now exhibiting failed retracements at two degrees of trend.
No, this is not the "good":
The "good":
The best thing the bulls have going for them is the resumption of leadership by big cap tech, via the megaphone blow-off top, shown here with relative strength.
Clearly two years of up and down sideways action sapped the momentum of this advance, but bulls are ALL IN now and that's what matters for this pattern to collapse...
The bad
Like China, Global Dow now has a-b-c retracements at two degrees of trend, however this latest retracement hasn't rolled over yet, to confirm that it's indeed over. It just looks like it's over...
Europe has been playing catch-up to nowhere:
Emerging Market stocks
Oil with Energy stocks
Amazon versus Sears
The least profitable retailer is putting the rest of retail out of business. It all makes perfect sense to someone...
Muni bonds: the next wave down here is going to be extremely painful as evidenced by recent volume...
Likewise with junk bonds
Global financials
Consumer staples as a ratio of treasury bonds
A necessary and sufficient condition for every market crash
All credit to Donny Trump for driving the chasmic divergence between stocks and bonds supported solely by hyperbolic bullshit and the Trump tax cut:
Last but not least, the multi-decade log scale Dow with overthrow of the upper trend-line...
