“And there is ample evidence everywhere I look!”
Certainly, surveying the stock indices landscape, you’ll find plenty; my 2017 top prize goes to all the folks buying the NDX100 like there’s no tomorrow. “Cuz fund-durr-mentals of course; nothing says screaming buy more than a collective group of over-hyped tech companies with no profits, no hope for profits, no business model except to burn through cash, and hope at the end of the day before the last nickel is spent, somebody dumber than them comes along and buys it out at a premium, so they can all go home and spend the rest of their lives worshiping at the alter of global warming … err, cooling … err, climate change … whatever the high political priests of the moment call the scam”.
You would think, after only a relatively short 18 years, that Sheeple would remember the last Nasdaq bubble that Greenspan killed in 1999… only this time it’s different. “Sure it is … keep telling yourself that, and then you will learn why these are the 4 most dangerous words in the English language”. Sheeple never learn, they collectively keep making the same mistakes over and over again throughout financial history; only thing that changes are the names. A new generation of “Chumps” are on the scene, and with zero perspective, they all feel invincible until they aren’t. That day is approaching very quickly.
It’s a sad day for Western Civilization when terrorist attacks don’t mean anything anymore; liberals lie and people die. While the global elite have ample security, live behind walls and fences, have heavily armed security guards at the ready to “take you out” should you be deemed a threat, isn’t it amazing they don’t want you to be able to defend yourself?
The scenes from London are horrifying enough, but the photo that struck me as most pathetic and revealing is the one of people running in panic from a pub to anywhere but the pub; note to terrorists … try this “stunt” in a place like Texas or Arizona and see what happens … within seconds most concealed carry folks [and there are plenty] would have taken them out without a second thought. Oh but wait … I forgot … liberals don’t want you to protect yourself cuz you might someday hurt somebody with that evil gun … yea, like the scumbag terrorists you support and want as a voting bloc.
Second place, and although it’s early in 2017 for handing out “stupidity awards”, cuz there’s so much time left in the year to go, has to go to uber Libtard Susan Rice … you know ex-President Empty Suit’s NSA advisor, who quipped that the terrorists just want to be a part of the global community and be loved and accepted, and that if we just “cut them some slack” would eventually come around and stop the killing … on a par with Marie Harf [barf], who once famously said at Cankles State Department that terrorists lack “jobs & health care”, and that’s why they are so angry and kill folks. “Sorry folks, you just can’t make stupidity like this up”.
But, I digress, simply because there’s enough “stupidity” in the stock market to go around and keep me busy for days; I see on ZH over the weekend, an analysis that since 2008 over 90%+ of all jobs created by the Department of Unicorns & Fairly Tales are a result of the “birth/death” model used in the jobs numbers. We all know the whole thing is a scam, first under Preezy Empty Suit and now with President Trump, that nobody in government has any frickin’ idea what’s going on in the economy or what to do about the problems. Sure, the solution is easy; let the “free market” sort it out, but that’s a horrifying thought to Libtards & Apparatchiks everywhere, when you got a whole country making money and engaging in free enterprise, and then suddenly coming to the realization [God forbid] you actually don’t need Libtards and/or Apparatchiks to begin with.
Cuz there isn’t anything more terrifying … no, not even terrorists or the threat of terrorism … to a Libtard government type person than “freedom”. “You will be told what to think, how to think, and what is permissible to say … we will control your guns and your health care … we control the MSM and the “narrative” … and that narrative is that only government can fairly solve the world’s problems … not just any government, but the one that’s run and controlled by the “right” people credentialed at the “right” indoctrination centers [a/k/a colleges], and most importantly know what’s best for you cuz you’re too damn stupid to know yourself”. Take this philosophy away and Libtards are truly terrified on 2 fronts; 1) people are making money [evil except for themselves], and 2) people are happy [which we can’t have cuz everybody should share misery equally, except some of the farm animals are more equal than others].
Which brings me to the FED; now running the entire decision making, trading, and otherwise “brilliant” analysis of the financial sector with one word … “TRANSITORY”! … “Ahhh, why didn’t I think of this before? Cuz now, anything and everything that gets FUBAR-ed can be blamed on those nasty transitory numbers that just won’t cooperate with the mindset of the political hacks & clueless elites who sit in the faculty lounge over at the Eccles building in D.C. But not to worry … Libtards will dream up some new government program to “fix” the problem, thereby creating 7 more in its wake that can be dealt with years later when the current crop of “Twits” have retired comfortably as consultants at Squid or JPM making a million a year. See how this works? What’s not to like”?
So, at what point does this stupidity end? Are we even close to being “there” yet?
Turning to today’s market … slow overnight trade … I guess the central banks took a rest cuz of the terror attacks in London … “For all of you people sadly killed or injured in Londistan this weekend, rest assured the world’s biggest problem is “climate change”, and your death or injury is simply the result of “lone wolfs”, where nobody but nobody can figure out their motivation, it’s so baffling; so, good luck in the future”. F-ing pathetic.
Really no trading in the pre-market … it’s a complete flat-line … very small ranges in all 3 U.S. indices here with about 30 minutes to the open @ 9:30. Looks very much like the same old crap, different day syndrome the market has become accustomed to, which is glacial drift upwards with zero breaks. Here about 15 minutes before the open, we already are starting to see “Chipmunk behavior” for the open, whereby no doubt they will bid stocks higher cuz “STFU & buy moar”!
And sure enough, the first tiny break holds, stocks go hit a new high, and “natch” the stupidity of STOCKS. MUST. NEVER. BE. ALLOWED. TO. GO. DOWN. AGAIN. EVER! continues unabated from the central bank bidders despite more horrible “transitory” news on productivity and an Apple downgrade from an analyst living in the dark ages who apparently doesn’t know about the SNB, or at the very least doesn’t know which side of the bread the butter is on. In any event, a quick scalp on the way up for our first trade directly below.
And for those of you wondering why I’m scalping this stuff, as I’ve explained before, the first breaks are the most unreliable and have a historical pattern of being the most dangerous; so, that being the case, I don’t feel real comfortable buying this stuff knowing at some point the party ends and there is a very nasty surprise waiting for traders who hang on to long positions for too long and the downside movement is eye watering to say the least on the 2nd and/or 3rd moves lower. It’s coming, I just don’t know when, and I sure as hell have no plans to get caught in it. Cuz, if there’s ever a group of markets that needs to “correct”, the U.S. stock indices are “it”. “Don’t ever underestimate the power of stupidity when it comes to buying stocks … from institutional Chipmunks to the retail buying public, they’ll all be long at the top and suffer the consequences, failing to see the proper “setups” in trading as the key, not what some FED Pie Hole Twit says on CNBC”.
Now, we got factory orders & durable goods orders that were just released, to the lowest levels in over a year to go along with declining productivity in Q1 and the Pacific Crest Securities downgrade of Apple; “but not to worry, ChairSatan Yellen & her loyal band of clueless Twits will just tell you ‘TRANSITORY”, and now stop with the inconvenient questions and let’s get back to the mantra of “EVERYTHING IS F-ING AWESOME BABY!”, and get back in there and buy moar stocks … cuz STFU and buy moar! By all means, raise interest rates some more come a few weeks so we can all party together”! As I stated earlier, when does the stupidity end?
Of course, it doesn’t ever end, and that’s my point; government NEVER is accountable, cuz there solution is twofold; 1) we need more of your money & our time to throw at the problem [and in the process line the pockets of our special interest groups], and 2) we need more power over the market to “make it behave” like we want. Pretty soon though, there is no market, and we’re living in a “soft” police state where Libtards change the rules every day to reflect their Snowflake delusions. “Why did you ever think financial markets would be somehow exempt from the bat guano we get in real life”?
Another new “recorder-er-er” highs in the NDX100 … I think the government should simply pay benefits in Nasdaq stocks … that way, everybody can be rich forever! Outside of the “Trump Dump” [you know, when the Libtard MSM tried to convince you President Trump, via Maxine Waters and other assorted verifiable Loons, that impeachment was 10 minutes from now], NDX100 is up over 10% since mid-April … cuz “fun-durr-mentals” I’m sure. Never mind the fact that the tax bill cutting corporate tax rates is completely “burnt toast” this year, or that ObamaCare is gone, or that even the budget is under control; nope, only “Everything is F-ing Awesome Baby”! is all we got. When does the stupidity end?
Here at Noon New York time, it’s again the “central bank bid show” as stocks are not allowed to trade on the downside [given the enormous bids in key stocks], no matter the horrible economic news or geo-political realities facing the world. And, as soooooooo many traders have learned to their detriment over the last year and 5 months since the crude oil disaster, selling into unlimited central bank bids doesn’t have a lot of upside, and so they don’t do it anymore. The result is, of course, a market that “sits” and doesn’t do Mr. Jack Squat; on the one side unlimited bids, and on the other longs who want to see the bids raised so they can sell to a newer group of traders who then play “how high can we go today Skippy” before the music ends and the day is over. There isn’t anybody who wants to be short now … oh sure, they’ve tried; however, you’ll find them in the ICU of the trader’s hospital for assault victims.
Early P.M. in New York, and I don’t think trading conditions [and I use the term loosely] can really get any worse; so far today 4 hours into this mess, and the Dow30 clinging to about a 20 point range [more like 10 points is the reality], meandering up/down on nothing but some occasional “vapors”. I don’t know what the VIX is doing, but I wouldn’t be surprised if it was in the 8’s or low 9’s; really haven’t seen these types of low volatilities in my adult trading lifetime. You have to go back to the 1960’s, when the Dow30 was around 500 or so, and trading volume for the whole day was like 2 million shares for everything listed, and to get the Dow30 to go more than a handful of points a day was a big deal. Today, the Dow30 is over 40 times higher, and thanks to central planners everywhere, we still can’t move more than a handful of points … go figure.
What the indices have to be careful of, though, is complacency; get this stuff on a roll down after 2 P.M., and start hitting new lows for the day as the central bank bids are pulled away, and literally all of your worst nightmares have the potential to come true; not sayin’ they will today, but at some point here late in the day when that “setup” comes, it will be nasty, cuz it’s the late day sell offs you have to really worry about.
Here, a little more than half an hour from the close, it’s hard for me to think of a more pathetic trading day ever … exactly what the clueless Twits at the FED want to see. Only, they’re only fooling themselves in their collective delusional mindset of a stock market with no volatility … there’s a day coming, and quite frankly I can’t tell which one it will be … perhaps it will be months from now … but I can promise you, on that day, all hell is going to break loose on the downside, and volatility will return far worse than most can imagine … and people will hopefully blame the FED & other central banks and they will lose whatever little credibility they still have … until then, expect more of the same BS action. Onward & Upward.
PAMM spreadsheet directly below.
Time for the beach! … I’m so outta here … until tomorrow.
Have a great day everybody!
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