Wednesday, August 26, 2020

MAGA 2020: New All Time Lies

Today, Trump Casino went late stage FULL RETARD....

It's fitting that the fakest sugar high rally in human history is reaching new all time highs this week in conjunction with Trump's re-nomination as lead clown of the Circus. Today's gamblers are apparently unaware that ALL of Trump's casinos went bankrupt. 

Fake confidence is soaring at the Republican National Convention featuring one salesman after another recycling the exact same economic lies that have imploded the U.S. economy for forty years straight. The theme of the conference is to blame China for everything, and trust in the Reality TV saviour Donald Trump. Last night, Supply Side con man Larry Kudlow promised MORE tax cuts for his ultra-rich buddies.

I suggest ALL of those people who hate China so much should stop buying any and all of their products i.e. say goodbye to Walmart.

This is the Federal deficit:
For 2020, the CBO projects the deficit will be 17% of the economy, yes you read that right. At this rate the debt will more than double every five years. Everything about the Trump economy is 100% smoke and mirrors. Exactly how he ran his own business - into the ground. 

The amount of central bank/algo market manipulation taking place right now is LETHAL. Short sellers have been systematically annihilated which will make the impending reversal of fortune brutal. Markets are going late stage manic ahead of Thursday speeches from Fed Chair Powell at Jackson Hole and Trump at the RNC. 

Once again today (Wednesday) the casino was up while NYSE AND Nasdaq breadth were down on the day.

The story of the day according to lamestream business media is that global stocks reached new all time highs. Unfortunately, nothing could be further from the truth. Only the U.S. market reached new all time highs, unconfirmed by every other market on the planet, AND within the U.S. unconfirmed by the Dow, Russell 2000, and the average stock.

Here is the Global Dow giving us the best wave count and signaling impending shitting of bricks:

Emerging Markets are back at the scene of the crime, led by China if you can imagine. The country getting bashed every single day by the Trump Administration.

We have never seen a call/put ratio remain this overbought for this length of time. Indicating a super cycle top in RISK sentiment:

I keep hearing all this noise about inflation. There is only one problem, bonds ain't buying it.

With millions of families now struggling to make ends meet, "reflation" is a figment of the well-lubricated imagination.

"About 30 million Americans are “at risk” of being evicted in coming months because they can’t pay rent"

Now, for a measure of the impending dislocation, here are some vertical charts:

Consumer Discretionary has been up eight weeks straight

Weekly chart: led the market today having been just added to the Dow (replaced Exxon), and posted "better than expected" earnings last night:

Move along, nothing to see here: New highs for Amazon, Google, Facebook, Microsoft

In summary, Trump has more than enough true believers.

For now.

Next up is a trip down reality lane.