Sunday, February 4, 2018

The Age of Ignorance And Arrogance. Is Over.

This week was a seminal week for global financial markets...

Two Fridays ago, on the last day of Davos, the Dow closed at its all time high. One week later, the Dow closed at the absolute lows of the week -1,100 points lower.

It was a key reversal of fortune:

90% of total volume was in declining stocks, for the first time since September 2016:

Ahead of the biggest weekly decline in two years, hedge fund billionaire, Ray Dalio had this to say from Davos:

That very same day, the CEO of Ameritrade said this:

" both of our[retail and institutional] businesses, we're seeing historically low levels of cash to assets under management."

At Tuesday's State of the Union this past week, Trump had this to say about the markets and economy:

"Small business confidence is at an all-time high.  The stock market has smashed one record after another, gaining $8 trillion in value"

Janet Yellen's last Fed meeting was Wednesday, at which the FOMC gave a hawkish outlook for the economy and reflation.

On Friday of course, the Non-Farm payrolls report showed the largest one month wage gains for the entire post-2009 expansion. All of which can be attributed to the nominal wage increases Fortune 100 companies gave their employees to lend the tax cut its micro-thin patina of concern for the middle class. 

Exiting the worst week for stocks in two years, we now learn that gamblers remain record long stocks and record short Treasuries.

In addition, this week Oil gamblers added a NEW record number of net speculative oil futures contracts. 

In other words, global gamblers have never been more leveraged to Ponzi reflation than they are going into this coming week:

Ignorance and arrogance have never been more leveraged to 100% pure self-serving bullshit...

Than right now: