Friday, March 3, 2017

The Scylla And Charybdis Of Dumb And Dumber

The Fed is boxed in by Trumpfuckistan who have been front-running a "fiscal stimulus" plan that is at least 10 months away...

Jim Cramer will explain:
"So many financials have rallied so hard in anticipation of a March rate hike...If the Fed doesn't tighten, the market would likely react negatively...the banks need higher rates to make money"

Let's see, raise rates, implode borrowers, bonds, China, oil, Nat Gas, commodities, Emerging Markets and rest of world. Don't raise rates, implode the stock market. Decisions, decisions...

"Looks like we have to raise rates..."

"Sumamabitch!!!" illustrated

Nat Gas

Municipal Bonds are next in line (below)

EM Stocks

Oil is on the verge of joining the party...

Meanwhile here is Goldman Sachs with annual revenue (red):

Any questions as to why the Fed would raise rates amid collapsing GDP from collapsing exports? Because it's already priced in - why else is Goldman the Treasurer and "Economic Advisor" to the President?

Some other things to consider at "all time record highs"...

Market Breadth (NYSE McClellan Oscillator, weekly):

“The options market is pricing in greater volatility ahead even though stocks don’t yet reflect this same dynamic,” 

In other words, "too late to hedge"

Correlation between VIX and S&P:

History teaches us that sheeple don't learn from history...