Tuesday, February 27, 2018

Appetite For Self-Destruction

The old age home has finally cornered itself with dumbfuck ideas. I suggest there is no way out...

It appears that wave '3' down is beginning, as today was an 88% down day...

It's all coming together now. The fatal collision between America's dumbest Ponzinomic ideas all taken to level '11' full retard. Amid record fake confidence and over-allocation to risk. Standard Fed policy is to keep hiking until something breaks, and then jump in the time machine and go back a few days. It never seems to work as seamlessly as described...

This is the headline that greeted gamblers this morning. The casino, which is one year overbought (see below), did not take kindly to the news

Here is a better way of looking at the Warren Buffet all-stocks-all-the-time trade:

This is the Tech / bond appetite for destruction ratio. A casino held aloft by a handful of big cap tech names, even as reflation reverses, sucking liquidity out of stocks back into bonds. 

Narrow exit in a crowded theater. Every tick lower in this ratio will mean less liquidity for sellers:

As of yesterday, the market is 15 months overbought, compliments of the turbo FOMO rally

Getting back to trend-line crash theory...


"Fake reflation won't stop more rate hikes" 

It didn't last time, so why would it this time?