The passive index bubble is a computer generated optical illusion, now running on glue fumes, a handful of parabolic Tech stocks, and non-stop Twitter gibberish. The operating economic hypothesis right now is that the longest expansion in U.S. history is undergoing a "mid-cycle adjustment". If Walt Disney was alive, he would be Fed Chairman, no question...
Trick or treat?
Who wouldn't bet that the most valuable company in human history will tack on another 10% from here?
The question of the day:
"Is three the magic number for Wall Street?
Market-based probabilities imply a 93.5% chance of a quarter-of-a-percentage-point rate reduction"
Due to the dumb money indexing bubble, the S&P 500 is no longer a reliable indicator of what is going on in the economy nor the underlying stock market. It is far too over-weighted to Big Cap Tech. As we see above, this latest tag of the all time highs was attended by very few stocks making new highs.
Ironically, the old fashioned Dow is a better indicator of the economy and market breadth. We've never seen anything this asinine before:
Ironically, IBD turned bullish on stocks this week even though their own index is carving out a clear head and shoulders top:
On the topic of head and shoulders top, Warren Buffett's diversified holding company is a good indicator of what is taking place under the hood:
A bubble in recession stocks
Stocks versus bonds.
The only way out of Trump Casino now is via explosion
"This current round of monetary-policy easing was described as a mid-cycle adjustment by Fed Chairman Powell earlier this year"
The longest economic expansion in U.S. history is now having a "mid-cycle adjustment". Only in a Terminal Idiocracy.
