Monday, December 9, 2019

The Reign Of Corruption. Is Ending...

This last melt-up rally has been fueled by the belief that the reign of corruption will continue for another cycle...

And no, they don't see it coming. Because who could warn them, they don't trust anyone who can be trusted...

Last week, the bulls and bears alike got rinsed as the market collapsed Monday and Tuesday and then catapulted higher back to unchanged on the week.

Where it gets interesting is that the stocks leading this last phase of glue sniffing are the two sectors that benefit the most from Elizabeth Warren sliding down the polls: Healthcare and Financials.

It's abundantly clear that the "big money" now betting on a Trump win has rotated massively to these two sectors. Last week's selloff was the biggest since August, and yet it's not even a blip on these charts. 

"Jefferies’ Holz wasn’t necessarily surprised to see the health care ETF’s improved performance over the last two months as Warren’s polling and odds declined over October and November"

Last week's correction was a minor pullback prior to a blowoff top in Financials, led by the the largest U.S. bank:

With respect to time, this top is perfectly symmetrical. Eleven months on the left shoulder and eleven months on the right:

Vol reversal each time from this level in the past 18 months:

Speculators have found a new toy. The riskiest stocks in the market:

Any questions?

Is it a coincidence that Biotechs dominate the list of recent IPOs?

Including the best performing IPO since August?


Which stocks peaked last in (December) 2018?

Healthcare providers

Filled the open gap from last year's crash, now rolling over again:

Overlay narco pharma with Hindenburg Omens

Showing us the three "highs" in social mood

The smoking crack zone: 

As I've said, the market and Trump's approval rating will collapse in lockstep, as everyone realizes the "paradigm shift" is on the way.

And no, they don't see it coming.