“You’re gonna need bigger umbrellas ladies!”
“What happens when the entire world prices perfection, and then comes that first
crack in the proverbial “Hoover Dam” pricing scheme”? As I stated the other day,
in 2008, only 9 ETF’s had the “FAANG” stocks in their top 15 holdings … fast
forward to 2018 and its 605 … and the number #1 owned? … why Facebook of
course.
Of course, we won’t know until history allows us to look back, but yesterday’s
“orgasmic buying spree” in the last 20 minutes of trading in the NDX100, on
news of tariff news from Juncker & President Trump, was classic “throw in the
towel, I’m gettin’ long forever” type of action, that history later judges to be
“TOPS” … and then minutes later, the thud heard around the world, as
suddenly FB disappoints with revenues, and then 30 minutes later has a
disastrous conference call, where nobody really knows how many millenials
are leaving the stodgy platform for “more exciting venues” … “and before you
can say ‘WTF was that’, 25% of Facebook is gone, and the world’s hedge funds,
ETF’S, ETN’S, & mutual funds still own a warehouse full of tulips … this could
get ugly”.
All day yesterday, I’m trying to buy and hang on for profit, and yet the market
simply won’t allow that luxury … “and if you think up at these levels I’m gonna
hang onto any loser and let it ride, “cuz as we all know it’ll come back, then
you’re nuts”. And then in a heartbeat, everything changes … new higher highs
imminent, “Oh the sky is the limit don’tchaknow”? … and in seconds,
everybody and their brother realizes they own too many tulips, and the trouble
is just beginning!
Even if Amazon’s earnings today after the close are stellar, it’s gonna be tough
to remove the stench of Netflix & Facebook this last week … quite frankly, the
longer this stuff stays elevated, the worse the correction is gonna eventually be
… I’m quite sure there are plenty of people saying this morning, “this time it’s
different”!, when it comes to both of these high flyers that have been grounded,
but then again, they said the same thing about Kodak & Polaroid from the
1960’s, Sun Microsystems from the 1980’s, Motorola from the 1990’s, Enron
& WorldCom from 2003, and last but not least Lehman & Bear Stearns from
2008 … the excuses are always the same, the only thing different are the names
of the people saying them.
“And, as always, when markets are threatened, look for the “Plunge Protection
Team” [PPT] to rear its ugly head should things start to unravel today … markets
simply cannot be allowed to go lower by more than a couple of percent … that
could rattle investor confidence, and the FED won’t tolerate this, so the story
goes … we’ll see if they show up today, cuz my guess is they’ve been up all night
and in consultation with every other central bank overnight, and will act
accordingly if things get messy”.
Now seems an appropriate time to post over in “Download Links”, in the right
hand column, Charles MacKay’s book published in 1841,
“Extraordinary Popular Delusions & The Madness of Crowds”. This is a slam
dunk classic on market bubbles [all kinds] you’ve most likely never heard of or
realized existed in the past … long before the roaring 20’s of the 20th century,
the “Nifty 50” bubble of the late 1960’s, the NASDAQ bubble in 1999, and now
here in 2018, this is an unbelievable read, and every bit as relevant today as
177 years ago! Read online or download, it’s in PDF, simply follow the link for
the book.
Turning to today’s market … “one of the biggest con jobs in the history of
markets, on display today, as beginning 2 minutes before the open, the infamous
“Plunge Protection Team” [PPT] showed up and issued the message that no
“NASDAQ PLUNGES!” news headlines would be making the rounds early”
… and numerous times today, the PPT has been in the market, shoving price
higher in the NDX100, followed by the law firm of “Zip, Zilch, Zero, & Nada”,
as price immediately dies and retraces quickly. You simply have to understand,
the NDX100 cannot be allowed to go lower today cuz it might mean a 2% decline
from yesterday’s close high, and that might upset some folks who vote … that
doesn’t mean it goes higher by default, it simply means we ain’t gonna plummet
today … and so we drift up/down in one of the tightest manipulated ranges you’ll
ever see, with both longs and shorts taking turns catching it in the shorts, as the
banks get their cue from the PPT manipulators … some gig huh? … what
happens when people in the private sector manipulate prices”?
Quite frankly, this is a bullshit day … steady as she goes in order to calm the
nerves of Facebook shareholders, and all those in ETN’s, ETF’s, & mutual
funds, so that they don’t hit the “redeem button” and create a meltdown in the
NDX100 … “I guess they’re hoping Amazon earnings bails the system out after
the close, cuz if they come in light, all hell is gonna break loose tomorrow on a
Friday”. EXIT QUESTIONS: “Does the PPT know in advance what Amazon’s
earnings are gonna be? If so, are today’s manipulations to bail out big
shareholders so they can sell, if the report is negative”?
Cuz I got news for everyone; “when the PPT backs away, and stuck big money
figures it out, all of those 605 large mutual funds that are overexposed to
“FAANG” stocks, are gonna panic sell like its New Years Eve 1999, and for all of
you that have investment exposure in said products, I wish you luck on the day
when you wake up in the morning and the NDX100 is called 1000+ lower on the
open, and your funds get to sell a weaker “Thelma & Louise” open … don’t say I
never warned people cuz I have repeatedly”. Not sayin’ when it’s gonna happen,
but from where I sit, it surely “IS” gonna happen … probably a lot sooner than
people realize, and it will come out of the blue, most likely starting in earnest in
Asia [read China].
Only one trade today … PAMM up slightly, a few bucks.
I came into today knowing this had the potential to be a very dangerous day
… either the open gets “monkey hammered” with selling and some folks get
washed out, or the PPT shows up and the market gets a reprieve from selling
thanks to the manipulators … well, it’s the latter, which IS the dangerous
scenario, cuz who knows when they back away and let this shit fall, especially if
it’s in the afternoon.
Well, the market is what it is … can’t do anything with a Christmas Eve
market that has sellers above it, and the PPT below it, and we wait for Amazon
earnings … of course, a few minutes after 4 P.M. EST, all hell is gonna break
loose again, like yesterday, cuz it’ll be “feast or famine” for Amazon
shareholders.
Days like this, and I want to shovel shit in the Reptile House at the zoo
… nothing but stop hunts, crap fills, and both longs/shorts crying in their beer
cuz nothing is happening … and when nothing happens waiting for news,
anytime you lose on a trade, it gets magnified cuz it’s difficult as hell to make
it back … have two or three in a row, and now you got mission impossible
staring you in the face, with almost no hope the market is going to move and
help you out … “and quite literally, that’s why I’ve only made one trade today,
cuz I’m not gonna get trapped in some trade that reverses in a heartbeat, creates a
loss, and then goes right back to where it was 10 seconds ago … and this is that
kind of day”.
So, we’ll pick up the NDX100 pieces after Amazon, and take it from there
tomorrow … no reason to do anything different … as it stands, the PAMM is
holding its own versus the NDX100 on a return basis, and while it can fluctuate
day-to-day slightly against us at times, overall over time it will return far
superior portfolio results without the risk. No use moaning about today … it
happens from time to time the market literally dies for whatever reason
… And with that, I’m outta here … until tomorrow mi amigos
… Onward & Upward!!
PAMM Spreadsheet directly below.
Have a great day everybody!!
-vegas
OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND
OPERATIONAL; SEE “PAMM/MAM MONEY PROGRAM” IN
“DOWNLOAD LINKS” SECTION IN RIGHT HAND COLUMN
FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND
START YOUR JOURNEY FROM WHERE YOU ARE AT TO
“ESCAPE TO SUCCESS”!
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