Thursday, June 21, 2018

Third Wave DOWn

What the Wrecking-ball-in-chief is doing now is called not fixing what isn't working aka. wealth inequality/mass poverty, while breaking what is working. Overall, I give him an A+ on the implosion scale. No way Hillary could have been this good...

What we've just witnessed over the past several weeks is global capital rotation out of everything else, into safe haven Netflix:

We see via Paypal how similar the current set-up is to February. Except this time will have a different ending.

Friday was down, Monday was VixPlosion. This is not a prediction, merely an observation. 

Sometimes market risk is so high and obviously bearish, that anyone who can fog a mirror is short, so the casino stair-steps lower due to continual short-covering. Which is the case right now. The Dow is dripping lower but it can't get oversold due to continual BTFD...

Which is how crashes happen. 

"the last time the Dow fell for nine straight trading days was a stretch that ended in February 1978"

The Dow’s longest-ever losing streak was a 14-day stretch that ended in August 1941"

"My advisor says that trade wars are a buying opportunity"

In other words, the status quo now hinges on OPEC, the largest cabal of serial liars in human history.

Yes, it's 2014 deja vu: Mutual Assured Bankruptcy

The massively over-capitalized U.S. shale industry has amply proven that $26/bbl is no obstacle to production; therefore, the price will go much lower this time. Under the proven maxim, "if at first you don't implode, try harder next time"

Gazing into my Magic 8 ball, tomorrow I predict that OPEC will agree to disagree and then cheat on their quotas as usual. Why stop now?

Meanwhile, Amazon and other online retailers finally took a hit today due to the Supreme Court ruling on retail sales taxes. It's a great idea, it just comes twenty years too late to level the playing field between internet retailers and mainstreet brick-and-mortar retail:

"The win was welcomed by groups representing brick-and-mortar retailers and decried by e-commerce advocates."

Just as the trade war with China isn't going to save U.S. manufacturing from decades of decimation, this ruling comes way too late to save brick and mortar.

That said, it can certainly put a nail in the coffin of the internet tech rally

Which is where things stand now - just enough fucking around with Globalization to break what was "working", yet not nearly enough to fix what isn't working. 

Which means the casino is in no man's land, as the last "safe haven" tech stocks roll over.

To join everything else that's been monkey hammered by the White House gong show...

Today was the fourth day out of the past five with an overnight gap lower at the open.

We need not ask why...

"We have the best military budget in the world"