If I were a Trump supporter with an IQ greater than 5 - not sure if that exists or not - but I'd be thinking, hey why don't you shut the fuck up already...
This (below) will be the epitaph for this era - fools loading up on risk because that's what other fools are doing. There is no objectivity anymore, no right, no wrong. Just figuring out what the herd is doing and charging off the same cliff as everyone else. Because if they did anything else they might look stupid...
The article states that the S&P's recapture of the 200 day moving average is the primary catalyst for the buying panic. Momentum algos that had suspended buying after last week's retail sales collapse, are now forced to chase the market.
In other words, momentum traders are chasing collapsing fundermentals. Yes, that's a new word.
JP Morgan was out today further baiting the bull trap with some good old fashioned data mining of recent history:
"Recent history suggests that equities actually have performed quite well as companies and analysts are trying to tamp down expectations for the future."
Their data mining of recent history suggests that company warnings don't mean it's time to abandon stocks. Which is true, UNLESS it's the end of the cycle in which case it's time to abandon stocks.
Which gets us to Walmart's "blowout" quarter which exceeded expectations. Here we see Walmart's annual revenue adjusted for inflation. Real revenue has gone nowhere for five years.
In other words, 4% of GDP was borrowed in 2018 for the tax cut AND 2019 tax refunds were scammed into 2018 and yet Walmart's annual revenue is still at 2013 levels, despite the fact that there are roughly 10 million more people in the U.S. today:
The best smoke and mirrors panic can buy
"Recent history suggests that equities actually have performed quite well as companies and analysts are trying to tamp down expectations for the future."
When did that brilliant "strategy" last explode?
It's often said that tops are a process not an "event".
I say that tops are a process followed by the shitting of bricks.
2018 being merely a taste of what's coming when panic buying turns to panic selling:
