Tuesday, May 23, 2017

Globalization Runs On Netflix And Non-stop Bullshit

Collapse will come without warning, aside from the eight year fake recovery...

Cyclicals are ominously pointing to recession and recession stocks are annoyingly confirming, so obviously the only safe haven is overvalued and overowned Tech:

Technology Is The Only Sector Gamblers Need To Own
"As we've noted before, US stocks are putting a bow on a stellar earnings season...On an aggregate basis, earnings rose fully 13.9% year-over-year, the strongest growth rate since Q3 2011"

"Stellar", meaning that corporate profits peaked two years ago. Note also that from the perspective of economic deflation (Fed rate) this "recovery" is weaker than the prior (2003) recession. At no time in the past 8 years has the Fed rate been above the prior recession low: 

It gets better, I mean worse:

"On the price-action front, the outlook for the pro-cyclical sectors has been much more ominous...Technology stocks are the only cyclical sector rising amidst strength in traditional defensive sectors including Utilities, Health Care and Consumer Staples...we wrote about some concerning signs in the energy sector earlier this month"

Historically, economically-sensitive sectors technology, material and energy stocks tend to outperform the stock market in a healthy uptrend, while economically-insensitive sectors like utilities and health care stocks typically outperform when the market is at risk of a pullback."

Obvious conclusion: Load up on Tech ahead of the recession...

And pretend that the market isn't getting narrower and narrower:

"With massive tech firms like Apple, GOOGL, Microsoft, Amazon.com and Facebook filling out the ranks of the planet's most highly-valued stocks, it will be difficult for the overall market to roll over while tech stocks continue to outperform"

You can't argue with that logic. 

Kind of like this:
Auto Parts Stocks: Canaries In The Coal Mine

"Auto parts companies have been the darling of wall street for years, gaining several hundred percent more than the S&P 500 since the 2009 lows. But lately, something has been changing for this very hot sector."

"Keep an eye on your tech stocks because when they do this, that's when you'll know you're totally fucked"

In other words, Globalization runs on Netflix. The new safe haven:

Meanwhile, in other bullshit, I noticed that OPEC is now apparently managing the entire Commodities complex, which includes 19 different commodities - from liquid fuels, to agriculture, to metals etc.

Because here we see that commodities and oil are sporting the exact same technical pattern, having absolutely NOTHING to do with OPEC's output cut.

Or as I call it - one year of non-stop bullshit later: