Tuesday, July 31, 2018


We are witnessing the endgame for record greed and exploitation taken to their logical self-destructing conclusion. Now featuring history's largest cap stock holding up the entire casino on flat sales of dumbphones. Really, what else?

Of the last four FOMC meeting's (Jan, Mar, May, Jun), the May 1st meeting was the only meeting that led to an S&P rally versus selloff. That is the meeting that coincided with the announcement of Apple's mega stock buyback. Basically one stock drove a three month rally on ever-imploding breadth: 

Can one massively overowned and overvalued Tech stock keep the rest of Tech from imploding? We're about to find out. Given that Microsoft, Amazon, and Google all beat on earnings and yet subsequently imploded, it seems somewhat like a long shot. Then again, in an old age insane asylum every dumbfuck idea they come up with works just fantastic until it explodes with "no warning"...

This is exactly how 1929 ended - record wealth inequality and an oblivious casino class. Trump is what happens when a robber baron dunce born on third base strolls home and thinks he made a home run. He's not the beginning, he's the end:

This shows how stocks have kept rising despite stagnant revenues. Keep squeezing the middle class. Globally:

Data from: https://us.spindices.com/indices/equity/sp-500

Despite zero growth in handset volume - and below Wall Street's low expectations - Apple still grew profit, via sales of the higher priced iPhone 10 and of course human history's largest stock buyback program:

Apple closed at $190 prior to their earnings report. $203 is the $1 trillion number. A reversal at these levels is game over for Tech, the S&P 500, and the globalized Ponzi scheme. Given that there were zero new highs in Tech land today:

For Apple suppliers, the news of zero unit growth year over year, is not good.

Nor is this news that broke after hours:

"The Trump administration will propose raising to 25 percent its planned 10 percent tariffs on $200 billion in Chinese imports"

In summary:

They were amply warned: