Just over three months until Wall Street bonus payout. This is no time for honesty, reality, or hedging to inconveniently intrude on the big, fat, ugly mega bubble. Which can only mean that trade wars are a "buying opportunity". After all, it's not their money...
Overnight, Donny escalated the trade war as promised. Threatening to further escalate if China retaliates. China just retaliated. Gamblers bought the fucking dip, what else?
The ball is now back in Donny's court, meaning tariffs on all Chinese imports, no "exclusions" for iPod Nano...
"Trump, in a statement, said that the tariffs would rise to 25 percent on Jan. 1, 2019, adding that "if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports." [$467 billion total i.e. everything]
"The chart
How bullish are investors about U.S. stocks? Our chart of the day from Bank of America Merrill Lynch’s latest fund manager survey (from Sept. 7 to 13) finds that portfolio managers are the most overweight they've been on the asset class since January 2015."
The reason the casino is still bid to record highs is because Wall Street only gives a fuck about their year-end bonus. After all, it's not their money. That's my theory, and I'm sticking to it until they implode.
This cap-weighted internet fund is dominated by the big names.
Breaking the trend-line for the first time in over a year:
The equal weighted fund contains more of the recently parabolic names. As we see, it wasn't really a factor back in February:
Small cap growth deja vu of February:
High yield credit (junk bonds) have been deteriorating since VolPlosion 1.0 in February:
Social Media stocks (Facebook, Google, Twitter, Snapchat) back in 2015 mode:
The Nasdaq 100 is at a critical juncture
Deja vu of 2015:
Outside of Technology, unfortunately things are not as rosy as gamblers have been led to believe.
The lie of the day:
