Ponzi World (Over 3 Billion NOT Served): Party Like It's 1929

Two Hindenburg Omens on the Nasdaq now. Another one Friday...

This is for the kill:

There were more warnings last October, only one signal in January 2018, and no warning in May of this year. A function of the ratio of new highs:lows.

Re: Hugh Hendry Embraces The Central Planning Matrix:
"There are times when an investor has no choice but to behave as though he believes in things that don't necessarily exist. For us, that means being willing to be long risk assets in the full knowledge of two things: that those assets may have no qualitative support; and second, that this is all going to end painfully. The good news is that mankind clearly has the ability to suspend rational judgment long and often."

Good news indeed.

Global capitalism is on the ropes. Placed at risk by its own quarterly lies and ad-sponsored delusions. Man boys circle jerking each other continuously.

This entire system is now a call option on mass delusion.

It's time for this era's sound and fury signifying Trump, to be laid to waste. We can ill afford to have Mr. Creosote running global affairs any longer.

Deja vu of 2016, sensing deflation, global central banks went to work this year reflating global asset values. Capital is now scouring the globe for the highest rate of return.

Return on capital is now coming sadly at the expense of return OF capital.

Yes, it's the Hugh Hendry conundrum all over again - Sometimes an investment manager must believe in things that are simply inherently fraudulent. In order to maximize bonus. Knowing full well this will all end badly.

This happens to be one of those times.

"There is no stimulus program that our Disney markets won't consider to be successful"

Here we see just how similar this current bailout period is to the 2016 Shanghai Accord. The Yellen Fed hiked rates in December 2015, after which the wheels came off the bus in January. The exact same scenario played out this past year. Powell hiked amid global dislocation. And then global central banks eased the spigots and stimulated a massive rally.

But a funny thing happened in late July 2016. The rally ran out of steam.

Of course the magnitude of this delusion is far larger:

This week's Barron's cover story highlights every problem of the current age: Denial, denial, and more fucking denial.

Pacific Gas and Electric is a California utility company that has been bankrupted due to lawsuits stemming from last year's wildfires which were attributed to downed power lines.

The company went bankrupt, but the stock kept trading at -90% of prior value.

"Now is the time to buy. I mean now. How about now?"

Or, now is the time to acknowledge the fact that the underlying problem has not been solved, because downed power lines were not the true problem.

No industry exhibits massively leveraged denial combined with misallocated Ponzi capital than the Energy industry. U.S. crude production saw a massive decline this past week as the credit market finally takes a step back from funding a decade-long mistake.

The entire energy industry is now one crude futures margin call away from imploding, even as crude oil speculators remain 3.8:1 long to short.

Crude oil "peaked" three months ago at a lower level than October:

The biggest difference between 2016 and now, is the quality of the rally, as measured by market breadth - a reflection of how few sectors are now benefiting from Ponzinomics: