Thursday, April 26, 2018

All Hail The Dumbfuck Bubble

Call it the "Trump bubble" for short. There's a corner of delusion for everyone. How big is this bubble? 7.5 billion +/- five people who don't know each other by name...

Bulls can thank Jeff Gundlach for sponsoring today's rally. In addition to putting a last-ditch bid under Tech, he just single-handedly ended the fake reflation bubble. Which leaves only one bubble left...

Suffice to say that the one thing all of these various Ponzi delusions have in common is that they are all 100% correlated to brick-shitting PANIC.

China Tech
Momentum Tech
Stock buybacks
Emerging Markets
Fake reflation

Dumb money

First off, this latest RISK ON party has lasted seven months so far. The IBD 50 are the leading growth stocks.

We will never see a more symmetrically perfect top than this - just to prove that no hairless chimp saw it coming...

Gundlach spoke at the Sohn investor conference earlier this week and said that he's long reflation (oil stocks) and short growth (Facebook)

Today, Facebook is having its biggest up day in two years. 

Neflix earnings, check. Google earnings, check. Facebook, 

Tonight is Amazon

The other thing Gundlach said was that a close above 3% on the 10 year would lead to an accelerated selloff in bonds -  further rise in yields. Yesterday was the first close above 3% and today one-sided gamblers are getting rinsed back below that key level:

Banks as we see never bought the fake reflation hype:

His XOP (Oil stocks) play was pure dumbfuck. Basically, these are fracking stocks, and as we see, they too never bought into fake reflation:

In other words, it was really only the dumb money that bought into this charade. And it's all dumb money now...

Speaking of fake reflation and dumb money, Zerohedge, who are always bullish on gold, are about to get Gartman'd by their own bullshit.

All that matters to Skynet is trendlines...