Friday, March 6, 2020

Rotation To Detonation

The MAGA Kingdom is imploding in broad daylight. Trump served his special-purpose of conning the useful masses. His true believers are accomplices to human history's largest fraud...

What we learned this week is that seven Hindenburg Omens on the NYSE were right after all. The Super Dumbfuck bubble is not going to crash, it's going to explode. This week, bailout whores got their eagerly anticipated bailout and they bought it with both hands. 

Where to begin:

Out of control virus
Global economy quarantined
Imploding Tech bubble 
Mass complacency
Credit collapse
Repo/liquidity collapse
China collapse
Collapsing Energy sector
No hedging whatsoever
Rampant lying about the economy
Extreme volatility
No stimulus safety net
Dumbfuck for president

Really, what's not to like?

Needless to say, the end of the cycle is the worst possible time for a hysteria-driven populace to hide under the bed. Record corporate debt has left record companies on the verge of insolvency. Now, this virus is going to set the dominoes in motion, via slow motion train wreck. Fortunately, this society has been told this is the middle of the cycle, so they don't have to worry about it. Global collapse is temporary, it will soon pass.

Meanwhile, the Fed is leaning FULL MMT already and the Dow hasn't even collapsed yet. Heli money is inevitable:

Which gets us to the Casino:

This week, the S&P backtested the 200 day moving average on the best news possible - Shanghai Accord 2.0, Fed bailout, and Joe Biden resurrection from the dead. 

And then it ALL exploded right back down to last Friday's lows today. What's left of the economic reflation trade imploded far below last week's levels amid a manic rotation to perceived safe havens. 

Here's what not to expect in the coming week: Shanghai Accord, Fed bailout, Biden resurrection, the majority of stocks holding up the market. 

Bailout whores got their bailout which they bought with both hands. They just failed to notice that it didn't work:

The story of this past week was bullish traders laid to waste in reflation trades. Treasury bond shorts annihilated. Oil longs monkey hammered and volatility shorts pounded for the second week in a row. These people can take a lot of pain apparently.

Here we see Energy stocks are back at 2009 lows:

Long term bond yields collapsed this week:

Emerging Markets have also broken last week's low:

The rest of the world failed the re-test:

Complacency remains rampant

"The sharp drop in bond yields has heightened the appeal of stocks with high dividends, and the recent selloff in the stock market has created plenty of them."

Tech was a key beneficiary of the panic out of reflation trades.

For now.

Despite two massive up days and massive inflows, "safe havens" ended the week barely above 200 day support:

You know you're an optimist when you take this home for the weekend not knowing if the next headline will take the global economy completely offline. 

The MAGA Kingdom failed the re-test:

What we saw this past week was a rotation to detonation deja vu of October 2008 during the week when the TARP bailout failed. This past week the Fed's .5% bailout exploded spectacularly. 

There is no stimulus safety net beneath the market. And as of this week there are no more safe havens in stocks. The safe havens are now the biggest bubble. 

The reign of Super Dumbfuck will be known for corruption, criminality, non-stop lying, Idiocracy, desecration, payoffs to whores...

And biblical revelation. When today's sanctimonious hypocrites wake up to the final realization that they're not Christian in any way shape or form.

They are useful idiots who got punk'd by a well known criminal. Making them accomplice to human history's largest fraud.

In an age when fraud has been normalized. 

In summary:

Hiding under the bed doesn't make problems go away, it only makes them far worse.