Stocks remain hypersensitive to every trade-related headline, now tracing out a fractal ledge, similar to 1987, more accurately 1929. In Elliott Wave parlance, third wave down. Gamblers have been been fully brainwashed to buy and hold on the belief that final victory in the Trump trade war is always just around the corner...
There is a reason for the dumb money mega bubble: Because sheeple have been brainwashed to believe that if they don't own enough "stocks" they will never retire. The economy is now inversely related to the stock market. The lower interest rates go, the more infinite valuations can be "justified".
"In the broadening top, the smart money is selling and the dumb money is buying"
ZH: The Smart Money Is Selling. And the Dumb Money Is Buying
We can see relative to the June rally that the strength of this one month rally has been far weaker, as the smart money hits the exits:
Breadth has gone nowhere on this rally. Money flow (lower pane) confirms distribution from institutions to retail investors
Utility stocks are going parabolic as recession concerns mount
The Global Dow is well below the 200 day, while volatility is already as high as the past two selloffs.
A function of relentless Twitter risk:
Internet stocks have gone nowhere on this latest rally
War is Trump's last option to stimulate the economy.
Defense stocks are trading accordingly
Compliments of non-stop central bank bailouts, far too many dunces made it through 2008 unscathed. Which is why the moron bubble is the last to burst.
