This is the era of industry mass deception. A period in which the corporate owned Borg of all-knowing idiots does everything possible to preserve and protect their corporate overlords from self-destruction. Including lying non-stop to paper over economic collapse amid Trump's never-ending trade war quagmire. And they are doing a fantastic job of it. Now that they've decided that all bad news is good news, they can sit back and relax. Their job has never been easier...
"The reading of expectations for personal finances rose to 136, matching the highest level since 2004"
The data follow Bloomberg’s weekly comfort gauge, which climbed last week to a fresh 18-year high on stronger views of the buying climate and personal finances"
Wall Street's role in this delusion is to lower estimates ahead of the quarter to the point where even a recession can go hidden behind manufactured estimates.
Notably this past week in banks:
"We haven’t seen the worst yet in our view. We still expect rates to go lower putting further pressure on bank earnings.”
Clearly a strong buy at the worst point in the cycle for banks.
Tech earnings are expected to be down -11.9% this quarter, but you would never know it...
"Record gains are coming"
And of course in Transports where gamblers are ignoring imploding global trade and Dow Theory non-confirmation by the Transportation sector:
"Record gains are coming"
And of course in Transports where gamblers are ignoring imploding global trade and Dow Theory non-confirmation by the Transportation sector:
"Unfortunately, macro [data] was right and J.B. Hunt missed sales estimates and struggled with falling margins in the second quarter. The goods news is that the stock jumped higher after earnings"
"This month, multiple organizations that track the trucking industry reported the sector is heading toward, or is already in, a recession."
"First, it was 'We don’t expect growth to be as strong as 2018, but see no reason to predict a recession," he wrote. "Now, it’s 'in almost every sector, in every mode of transportation, in every part of the globe, freight flows are signaling economic contraction.'"
Today's gamblers are ignoring Dow Theory - one of the oldest and time proven tenets of the market. It posits that the Dow Industrial Average and the Dow Transports must confirm new market highs.
The Transports are right now confirming that the December low is about to be re-tested imminently:
The Transports are right now confirming that the December low is about to be re-tested imminently:
One of the reasons gamblers are ignoring the trucking industry is because the railroads are still making new highs.
To find out the last time we saw such a divergence between rails and trucking, we have to go back to October 2008:
In the broadening top, smart money is out of the market. Participation at the later stage is by the general public.
aka. "the usual bagholders"
Just remember one important point:
None of this deception and delusion was "man made"
...and global collapse
