"What a fool believes he sees,
no wise man has the power to reason away
What seems to be, is always better than nothing"
What bothers me the most about the modern conservative movement is that it's 100% bullshit. Which is why it now requires a circus clown to sell it. After George W. Bush's meltdown, for a while they were out of tricks. This re-pricing event will be an ENDGAME lesson for true believers in serial criminality.
First off, yesterday Fed chair Powell delivered an entire speech on the topic of the Fed's willingness to let inflation run hot in the worst economy since 1930. It's no wonder copious dunces today view inflation as the main threat, even the Fed is clueless on this subject. Powell didn't mention one word about the real problem, deflation. They have a solution for the problem that doesn't exist, and not even the slightest clue that the real problem is the exact inverse of the problem they are attempting to solve.
Super idiots.
Super idiots.
Hot labor markets are the new problem with tens of millions unemployed:
Gold spontaneously imploded on this steaming pile of bullshit. Today, it made a modest comeback to complete the third retracement at every degree of trend:
In Trump Casino however, Fed bullshit kept the fake reflation dream alive for one more week.
This is the official wave count
From an extreme positioning standpoint, here we see that Active Managers raised their risk exposure this week to the highest level since just before VixPlosion 1.0 (Feb. 2018):
Here we see the call/put ratio is making a double top. The last time it peaked was June 11th when the NYSE rolled over. This time the Nasdaq AND the NYSE will be rolling over at the same time.
Despite the relentless robo rally, volatility is starting to catch a bid - at the exact same level that sparked wave (iii) down in March:
It's only a matter of when, not if this entire delusion explodes with extreme dislocation:
The last time we saw volatility rally with a rising market was Feb. 2018, VixPlosion.
Which is why global spontaneous VixPlosion 2.0 is now my base case scenario
Bueller?
Economic AND financial disintegration are now WELL advanced in the U.S. and globally. Only a handful of massively overowned MAGA stocks are keeping this delusion alive.
What else?
This week in summary:
"Four more years!"
