Tuesday, July 30, 2019

Caveat Emperor

Trump's market manipulation rally is ending...

The hypocrisy in this degenerating society is overwhelming. Obama never questioned Fed policy once, yet his Fed chief was criticized for political interference. Now Trump blatantly coerces the Fed to cut rates, no one on the right even questions it. His abuses of power are unchecked and unprecedented, all gimmicks simply to get himself re-elected so he can ban democracy forever. It's the white alpha male double standard that defines the Banana Republican party. The all-knowing "we know better" wholesale Idiocracy. Little do they know that their very own Anti-Christ is about to bury them for good.

Three Hindenburg Omens on the Nasdaq. The third one fired yesterday:

Through various forms of alchemy and market manipulation, the Dow remains artificially pinned to the double broadening top. Which is bad news for gamblers because the Fed uses stock valuations as a metric for policy. One less reason for them to be aggressive. 

From a technical standpoint it portends extreme dislocation:

The real action is overseas in Europe where Boris Johnson is causing serious angst:

The rest of the world rolled over at the same level as May having failed to confirm the S&P's new all time high:

Cyclicals are not conned by Trump's doublespeak that a great economy needs rate cuts. 

Oil is stalled at the 200 day, sporting a fractal identical to May:

Apple is rallying after hours on reports of slowing growth and declining profits. Wall Street once again massaging expectations ahead of time:

New highs on the Nasdaq peaked a month ago, similar to October. Except this time, the index kept on chugging to new highs purely on smoke and mirrors:

Gamblers have been warned for ten years straight about the various gimmicks that have been used to create this illusion.

All warnings have been assiduously ignored.

"This decline in liquidity was the result of the rise in stock market volatility in 2018"

"Diminished liquidity in the E-mini market is symptomatic of broader trends. Analysts at JPMorgan, Deutsche Bank, and investment management firm Bernstein are among those warning that stock market liquidity is in serious decline, with growing dangers that a modest stock market selloff could snowball into a full-blown crash"

What has caused this decline in liquidity? Insiders getting out while they can: