Wednesday, June 20, 2018

Atlas Shrugged

Hard to believe, but the rest of the world is not willing to pay for Trumptopia. 1929 levels of global economic risk now combine with Y2K levels of risk exposure. Trumptopia can best be described as a latent dementia-ridden dystopian social disorder, afflicting the mentally weak and infirm: The consumption class, systematically poisoned by corporate junk food and junk culture. We don't live in the post-truth era, we live in the post-intelligence era...

Sadly, their useful life has been reached, as Zion is once again about to be destroyed.

It's Wednesday, so the overnight futures were bid to ensure a profitless VIX options expiration following three daily gaps lower in a row on the S&P, all bought with both hands in the U.S. As the rest of the world gets pummeled, U.S. gamblers are taking asinine levels of risk, predicated entirely upon fake optimism...

Any questions?

Trump's trade policies are annihilating the industrial companies he purports to be helping, while driving capital into the riskiest junk stocks:

"General Electric shares rebound from a lower open Wednesday, a day after news that the last original Dow component was being dropped from the blue-chip index"

This chart sums up Trumptopia:

100% fantasy, 0% reality:

This is a four year view:

Even as GE gets removed from the Dow, a company spewing illiterate bullshit across the internet in 147 character bursts gets added to the S&P. You just can't make this shit up.

We live in the post-intelligence era. No brain required. Having a brain is a major liability. 

On the risk side...

EM stocks are catching a break so far today, but the pattern is identical to the 2015 smash crash:

On the exposure side...

Gamblers are seeking "safe haven" in small caps, deemed to be less exposed to trade wars. While we see in the lower pane, breadth among large caps has been deteriorating:

Appetite for risk can also be seen via revenueless Biotech

Internets are going Y2K+

Led by Netflix which which broke out of its three month wedge four weeks ago, and has been going vertical ever since:

In summary:

Atlas shrugged