Friday, July 20, 2018

In The Manchurian Candidate We Trust

This week, stoned gamblers bought Amazon prime day, ALL IN trade wars between the two largest economies, Fed bullshit, Larry Kudlow's Voodoo Economics at level '11', and fawning servility to Russia at America's highest level of office, all bought with both hands. Just to prove that there is no lie too big - political, economic, financial, that the old age home won't  believe...

We've seen this movie before...

This week the Manchurian Candidate was summoned to Helsinki to receive new directives and hand over the nuclear codes for safekeeping. There's no "Deep State" in Russia, so we can all breathe a sigh of relief. Those who don't believe that Trump can implode this gong show, evince way too little faith in Bozo the Clown. He was hand-picked by the KGB for a reason. Having been forced to recant his view on Russian election interference ten times this week, you could count the minutes until he went ALL IN on China, to appease his bloodthirsty base. The world's second largest economy is on the ropes, which means we're #Winning!!! The term clueless dunce is a vast understatement...

Dumb and dumber:

Kernen posed the only economic policy question that ever matters to the casino class:

“What if the stock market were to go down?”

“If it does, it does,” Trump responded

The key level every short-term speculator is watching right now is 2800 on the S&P 500. A close below that level would mean that this week's breakout was a fakeout. 

Setting up Shanghai Surprise for next week:

Tech's two largest point-setters rolled over this week, and the third (Microsoft) reported earnings last night, indicating a potential blow-off top today.

A break of the upper trend-line augurs for fakeout on Amazon as well:

Oil staged three failed rallies this week on heavy volume:

This pattern is now identical to 2016.

But on the plus side, Go Daddy made a new high:

The bond market called the Fed's bluff this week, and Trump's comments criticizing higher interest rates was the last nail in the coffin. Which means record shorts are about to get final pole axed:

Banks led this week, but will follow yields lower:

Safe havens are final imploding

It was one hell of a week, but nothing compared to what bodes for next week:

In summary, what America needs more than anything is this quaint concept called "shared sacrifice". And it looks like that day is coming...

And, what the world needs more than anything is also shared sacrifice. Which by sheer coincidence will arrive on the same day, via overnight delivery. 

Free of charge of course.