Seven months ago at the lowest point of the decline (Dec. 26th), Trump realized his 2018 tax cut scam was a bust, and he needed a Fed bailout to rig the 2020 election. So he told gamblers to "BTFD" and let him handle the Fed. It's been a rocket ride higher ever since, as well trained chimps have been front-running the Fed the entire time.
Needless to say they are well lubricated for what's coming...
BTFATH: "Buy The Fucking All Time High"
The background story of the week has been the growing question of Fed independence. Something that has never been seriously questioned by any president prior to Trump. One of Trump's lackeys - Supply-Side Ponzi schemer Arthur Laffer, went so far this week as to say that the Fed should be under Presidential control instead of being apolitical.
For that, he was awarded the medal of Freedom.
You can't make this shit up:
What is truly frightening at this juncture, is that with only a 2% Fed Funds rate, the Fed can in no way afford to cut rates merely to buy the election and boost stocks. The amount of economic dry powder at this point in the cycle is without comparison the lowest in U.S. history. And yet gamblers and Trump are clamoring for lower interest rates.
By politicizing monetary policy in such an overt fashion, what they are really asking for is the hardest landing ever. Because they are misusing monetary policy not for economic purposes, but to hyper-inflate the asset bubble. After all, this is the greatest 'Conomy ever.
Which gets us back to the casino, and the blow-off top taking place in real-time.
Start with BitCasino, always a good indicator of global risk appetite. Here we see that it put in another shooting star on the daily just today. To finish a three wave retracement that started ten days ago:
Here we see momentum Tech. Notice at the October high, MoTech made three lower highs. This time, three higher highs. That portends rapid reversal of fortune.
Unlike the rest of the market which pulled back hard in May, the "minimum volatility" complex has not corrected since December. Driving an ever-narrower rising wedge:
U.S. cyclicals are rolling over, led by Transports, which are deja vu of December
Overnight futures have been down four days in a row, bought with both hands in the U.S.
The rest of the world has been rolling over since the G20.
China Tech is clinging to key support
Here we see leading sector (REITs)(black) overlaid with China Tech:
Here we see the sugar high
Notice that Coke drove to one high on the left shoulder, two highs last Fall, and so far, three highs on the right shoulder.
Delusion has grown with each successive rally:
The news of the day as believed by the sheeple:
Begin countdown...
