Wednesday, March 21, 2018

The Elevator Ride Lower

The casino is levitating on short-covering ahead of the Fed in the weakest sector: Energy. Meanwhile, Consumer Staples are getting monkey hammered. The defense has left the field. It's all offense now...

The Dow is clinging to the tax cut Maginot Line:

Recall that back in 2015, it was Consumer Staples that buoyed the casino when Tech imploded:

Now we are witnessing Y2K-era tech valuations, record gambler exposure, and record complacency, and a late stage rally supported by oil. Or should I say a three wave retracement off of the February low.

Recall about a week ago I said that the S&P (gray) is tracking oil 1:1. That is no longer the case, now the S&P is lagging oil:

Oil can't keep this shit show levitated. The rest of the world and NYSE breadth are reminiscent of 2014 the last time global fake reflation imploded:

Exxon is looking more like 2015:

As do the other mega cap stocks. 

We'll soon find out if the Fed can monkey hammer Financials with some lovey dovey Fedspeak, deja vu of last March. 

Either way, they're a tad extended: