Thursday, November 8, 2018

The Dumb Money Is Trapped In The Last Trump Casino

How the hell did that happen?

MW: The Smart Money Is Using The November Bounce to Dump Stock At A Record Pace

"The drop in the rate of change at the start of the year was the second worst ever, trailing only the 2008 meltdown, he wrote, while the move over the last month surpassed the 2008 collapse."

Via Bloomberg:

"Debt-fueled corporate buybacks will be crucial to sustained stock-market rebound"

Herein lies the problem:

ZH: Nov. 4th, 2018
Here Comes A Sharp Slowdown In Stock Buybacks

First off, companies already bought back an asinine $680 billion of stock during the first half of 2018, which was the most volatile period in three years. Here we see that stock buybacks barely kept the market afloat. Secondly, the reason the market rallied into late September was ahead of the Fed rate hike. It was a global short-covering rally. 

Which gets us to today's announcement:

You know you're an optimist when...

Meanwhile, speaking of bear markets:

"WTI crude falls from nearly 4-year high to bear territory in 5 weeks"

Ponzi reflation imploding:

Speaking of imploding casinos...
ZH: Wynn Casinos Sees 2008-Magnitude Slowdown

"No fundamental analyst saw it coming"

In summary, the world doesn't give a damn about debt-fueled stock buybacks gimmickry...