All of the problems that have been successfully ignored until now, are coming to a climax...
Where to begin...
First off, technician Carter Worth on Fast Money recently predicted that Tech earnings this week would set-up a blowoff top for big cap Tech. Yesterday Apple beat expectations the stock hitting new highs today, and after the close today (Wednesday) Microsoft hit new highs in after hours. These two stocks now share a market cap larger than the German stock market (fourth largest economy in the world).
Also in Tech, the semiconductor bubble is popping as AMD and Xilinx both missed expectations on earnings.
AMD was the top performing stock in the S&P 500 two years in a row:
Getting back to the FOMC, as is tradition recently, the reflation trade got pole axed after the meeting. Already weakened by the Coronavirus:
Energy stocks are bidless, as are commodities in general
Emerging markets back-tested the 50 day from the underside:
Small caps are rolling over hard:
Which is why the crash ratio reached a new extreme today:
I would be remiss if I didn't mention Tesla's earnings "beat" after the close today. The stock is at $650 after hours (not shown). The last time we saw this amount of asinine short-covering being October 2008:
As expected, the Fed held rates steady today and then made the point of saying they are not trying to boost stocks. Which means that they are boosting them by accident. Which apparently makes it Ok.
As we see, the Fed is already under the microscope for sponsoring Trump's re-election bid. Which means that Powell can scarce afford to look like yet ANOTHER Trump stooge during an election year.
Which means that there is no actual safety net beneath this casino, until it's limit down and exploding in every direction.
Position accordingly. Because every denialistic risk known to man is now coming home for a totally unforeseen hard landing.
Today we learned that the World Health Organization is on the verge of unleashing global panic:
“I strongly advocated on air for [WHO] to declare a global health emergency today,” Eric Feigl Ding, an epidemiologist and health economist at Harvard University’s Chan School of Public Health, said in a Twitter post on Monday.
“The facts are pretty clear this #coronoavirus #nCoV2019 epidemic is no longer localized to China and has higher pandemic risk than SARS.”
China's markets don't open until Monday, however Hong Kong was open today.
Any questions?
