The bigger the bubble, the more explosive it ends...
In the end, Trumptopia will be remembered for only one thing - a massive bubble of hot air that spontaneously exploded with maximum dislocation.
In the end, Trumptopia will be remembered for only one thing - a massive bubble of hot air that spontaneously exploded with maximum dislocation.
This proprietary formula for generating human history's largest super bubble and super crash has made risk management impossible. In particular, shorting individual stocks or the major indices has become lethal.
I would be remiss if I did not comment on last night's selloff due to the Iranian rocket attack on the base in Iraq. My oldest son's best friend from the Marine Corps was en route from Camp Lejeune (NC) to that exact base in Iraq when the attack took place. Fortunately, they turned back.
It was a reminder that some of us have more skin in this re-election gambit than the draft-dodger-in-chief. Our son, also in the Marines, is safely within rocket reach of Kim Jong Un aka. "Rocket man".
Enough about me and my sleepless wife. From a markets perspective, the futures sold off -50 points (S&P) and then ramped back to breakeven within a few hours. If you blinked you missed it.
The key takeaway is that volatility is rising and today's "all time highs" are one event away from imploding. Fortunately, Trump informs us that Iran has "backed down". Sure. Several million pissed off young men with no future decided to go back to unemployment to help Trump get elected.
Who wouldn't believe that? It's like the trade war, "it's over" on Twitter and Faux News, but in the real world nothing has changed.
Getting back to the casino:
No surprise, the world's largest stock by market cap, and hence most overowned stock in world history, keeps making new highs:
Getting back to the casino:
No surprise, the world's largest stock by market cap, and hence most overowned stock in world history, keeps making new highs:
Internet stocks are getting their mojo back. Amazon, Facebook, and Netflix are still all below all time highs. Here we see Google just reached a new all time high. Every peak in Google for the past year was a peak in the market:
As I said earlier this week, the oil rally is over:
If anyone asks, this fraud was only about Wall Street pump and dump
This fantasy that central banks can control every asset class on the planet with their drip feed programs and momentum algos, is a first order delusion. The only thing they can do is keep making the bubble bigger until it finally gets out of control.
Something Japan learned the hard way a long time ago.
In other news, Australia is officially on fire now.
Today's denialists tell us this is all "perfectly normal" when viewed on a ten thousand year timescale. So those of us planning a visit one day will have to get a time machine and jump forward a few dozen lifetimes.
These are the same fucking morons who believe that Trump is their new Jesus, and printed money is the secret to effortless wealth. Little do they know that their sole role in history is to be the biggest and dumbest clowns in U.S. history and therefore NOT to see the circus ending. A role they fulfill admirably I might add.
Club Orlov: License to Kill:
"George Orwell once offered an excellent explanation for this phenomenon: as the imperial end-game approaches, it becomes a matter of imperial self-preservation to breed a special-purpose ruling class—one that is incapable of understanding that the end-game is approaching"