Monday, March 19, 2018

The Scylla And Charybdis of Fantasy And Reality

The Fed can remain eminently clueless and signal the removal of more liquidity, or they can monkey hammer the fake reflation trade. It's really up to them...

The Nasdaq's island reversal of fortune just trapped gamblers in the casino. So they played another hand of BTFD. What else?

At the lows today, the casino was enjoying another 90% down day. But don't take my word for it...

Yes, this again...

Today was the first gap 'n crap since the early February implosion. The S&P 500 gapped below the fifty day at the open and kept running. I think we all see where I'm going with this...

The Nasdaq's island reversal of fortune bounced right at the 50 day:

The Dow is once again close to the trendline:

FANG stocks got pole axed

Despite tech leading the selloff, there was absolutely no sign of fear. Just another buying opportunity:

Which means it's on to the next time zone

To determine if my count is finally right

Gamblers are already surmising if the Fed will be less hawkish given this selloff and recent weak data. 

Which would take out the last leg of the stool and monkey hammer the Gundlach short Treasury trade. You know, just like last year:

CNBC: March 2017
Fed Hikes, Adopts Less Hawkish Tone

And then shit gets real

"political uncertainty is overshadowing Fed policy"