Friday, January 20, 2017

No Clown Left Behind

'b' waves are as fake as the people who believe in them...

This week was all short-covering ahead of Yellen, Wednesday, Draghi, Thursday, Trump, Friday. Now that that's out of the way...

New Highs S&P 100 mega caps:

New highs total U.S. markets

Obama's hope and change regime produced the exact opposite result, so now the reality TV messiah will make America great again by taking failed policies to level 11. You can't make this shit up. It's 1,000% Idiocracy. In other words, the trip back to the 1950s, officially begins, today:

In his inauguration speech, Trump derided Washington elites for abandoning the middle class. So instead of having Washington's political hacks working for industry insiders, Trump nominated industry insiders to run the entire government. Cut out the middle man. The de facto Idiocracy lapped it up...

Technically speaking Obama's rally lasted from his 2009 inauguration through today. Trump's election was just the blow-off top of Obama's eight year rally which in Elliott Wave parlance was a 'b' wave, meaning completely phony. Brexit and Trump's election saw overnight limit down 100 point S&P crashes, but the Idiocracy bought the dips with both hands. The machines were smarter than the people. It was social mood theory in action. B waves are bubbles of fake optimism during a period when economic fundamentals are consistently eroding. Obama's dual term consisted of a 100% borrowed recovery leaving interest rates a miniscule .5% higher than the 2009 nadir, a 120% increase in Federal debt, millions fewer manufacturing jobs, a collapse in labor force participation, a $4 trillion increase in the Fed balance sheet, and most importantly a massive increase in corporate profits at the expense of everything else. Trump is going to fix all of those inequalities starting with cancelling health insurance for tens of millions of working Americans. His first order of business. The stoned Idiocracy bought it hook, line, and sinker. What else. 

Unfortunately for the Trump messiah and his corrupt acolytes, the reduced foundation that Obama inherited from Bush has now been totally obliterated. Trump is taking over a hollow economy featuring stocks at all time highs. Today's valuations are as fake as the people who believe in them. In other words, stocks rallied into Herbert Hoover's 1929 inauguration as well. Then they collapsed 90%...

S&P 500 with mega cap new highs (S&P 100)

Oil (ETF)

Chinese stocks

$USD aka. 'TINA' (There is no alternative)

Apparently there is...


Labor Market Conditions Index 12 month moving average: