Monday, May 1, 2017

Living Large On Bread And Circuses

2000 x 2008 x 1987 = ?

Stained underwear.

Where to hide when GDP is imploding? Netflix
The top four companies by weighting within the S&P 500 made new highs today - all technology stocks: Apple, Microsoft, Facebook, and Amazon. As yet, still unconfirmed by the S&P 500 itself... 

But first, in recognition of May Day: International Workers' Day

ZH: Isn't It Obvious A New System Is Needed?
"Communities that foster small-scale entrepreneurship, local efforts to address local scarcities and paid useful work thrive in ways that contrast sharply with communities dependent on bread and circuses and global corporations."

What's wrong with bread and circuses?
Everyone enjoys a good circus. It's not obvious a new system is needed, because we have the casino to generate the fake wealth effect. As long as Facebook keeps going up, this will all be fine. Rule #1, never question the system. 

Speaking of Facebook, earnings this week from Apple, Facebook, and Tesla - all of which made new highs today. As did Amazon reversing its key reversal from Friday. Rounding out the list of new Big Cap Tech highs: Microsoft, Salesforce, Activision, Netflix, Adobe, Priceline.

In other words, Netflix is now a "safe haven" in the face of imploding GDP.   

Meanwhile, Tuesday and Wednesday, the Fed meets to decide on money printing policy. Friday is the jobless report, where we learn how many real jobs were automated and replaced with McJobs.

In the meantime, "Let Them Eat iPhones"








Bonus chart: Momo

Because that's what a Ponzi scheme is - dumb money chasing momentum...