Wednesday, April 5, 2017

Skynet Meet Third Wave Down

Trump and the Fed are too busy imploding the status quo to notice that it's imploding...

Hiking rates in the face of collapsing loan growth is not enough, now the Fed wants to implement reverse QE:

There's only one minor problem, which is that the offset to Fed stimulus now being withdrawn, not only does not exist yet, but it sounds like an Infomercial:

What could go wrong?

"Trump condemned excessive business regulations. He vowed to "get rid of 90, 95 percent of it and still have the same kind of protection."

Trump's approval ratings, historically low from the outset, suggest that most Americans, in fact, do not believe him"

And what do I think about today's "better than expected" ADP jobs number?

Not that much. Here is 12 month rate of change in non-farm payrolls with stocks:

More importantly, what about that new high in Apple, Amazon, and Facebook? aka. Y2K deja vu?

I call this chart "Mega Crash":

Amazon key reversal. Today...

Likewise, key reversal of fortune in oil today, due to yet another higher than expected inventory build. 

The new wave count:
Wave 1 (red) was the slowest, wave 5 was the shortest, wave 3 was the most intense...

No sound necessary...