Friday, December 27, 2019

2019: History's Biggest Pump And Dump

Picture a year in which moral courage was exemplified by a 16 year old girl, while rampant Lost Boys - including Captain Dumbfuck - trolled her mercilessly. This is the world of collapsed morality we live in now. A world ordered around greed, greed, and more fucking greed...

We exit 2019 amid record reach for risk. Which means that Wall Street bonuses will get paid, while the usual bagholders get stuck with the exploding tab. This cynical society is about to learn a good hard lesson about turning a blind eye to corruption as usual. 

2019 was the year of the pump and dump, both via RECORD insider cash outs using stock buybacks, and via record Silicon Valley Unicorn IPOs, which were an unmitigated disaster.

Here we see via the call/put option ratio, the reach for risk by speculators exceeds Trump's election AND the tax cut:

The Rydex ratio confirms:

Here we see the smart money hitting the dumb money bid, cashing out non-stop since Trump got elected:

Of course, Tech led the year. As we see lower pane, new highs are declining similar to the tax cut implosion:

Within Tech, semiconductors led all year.

The "melt-up" began 7 months ago. The 200 dma hasn't been touched since:

During 2018, Emerging Markets declined the entire year after the tax cut. During 2019, EMs retraced the prior decline:

The Japanese Nikkei best exhibits the two year head and shoulder top:

Among the failed Unicorn IPOs this year: Lyft, Slack, WeWork, Pinterest, and course Uber:

The founder of this year's largest U.S. IPO just finished selling ALL of his shares in the company last week. 

But what does he know?