Tuesday, September 8, 2020

MAGA Imploding

Microsoft Apple Google Amazon

It's the unspoken irony of this era that the only stocks that have led the MAGA rally ever-higher are the new economy Tech stocks that the Trump Administration loves to hate. While the legacy smoke stack industries get destroyed by a virus that preys on fat denialists.

Proof that God has a wicked sense of humour, and she only accepts payment in carbon:

This neatly summed up today's sentiment:

The self-nominated leader of the Ponzified masses begging for help:

The Tesla bubble has officially imploded

Record call options down the drain:

As it was during the Feb/March decline, only the last :5 minutes of trading was worth watching. The rest of the day consisted of volatility algos desperately trying to generate momentum. Get used to it until the zombies shit a brick and discover the "sell" order.

The story of the day was the Nasdaq fighting for its life at the 50 day moving average. It tagged the key support line multiple times throughout the day and then closed at the lows of the day. As did the S&P futures, which sets up an interesting day tomorrow.

Any further dislocation from this level will prove the "correction" camp already wrong on day 3 of the selloff, and then it's on to bear market:

"The Nasdaq’s 10% downturn from its Sept. 2 all-time peak, however, is notable because it surpasses the previous record pace of six-sessions that it took for the index to crash from an all-time high into correction back in March"

In other words, the Nasdaq just did in three sessions what took six sessions at the previous record crash back in March.


Momentum stocks as a whole closed below support:

Semis below the line:


"BTFD" was the order of the day:

Oil was monkey hammered today

"The IEA joined the growing chorus of voices who see the oil demand recovery stalling out"

ExxonMobil’s financial pressure mounts. ExxonMobil (NYSE: XOM) faces a cash shortfall of about $48 billion through 2021, according to a Reuters analysis. The widening cash flow gap may require deep spending cuts, asset sales, and/or more debt. Exxon has already added $23 billion in debt this year. Analysts are even beginning to see the sacrosanct dividend as no longer untouchable"

History will say that the Trump era killed Exxon. 

As a reminder, in Trump Casino, there are no safe havens. 

I saw a commercial for gold today that said it's a hedge against uncertain times. Which reminded me that there are going to be a lot of gold bars on the secondary market soon. So if you want some you should wait until they go on sale.

Within a year from now there is going to be a glut of everything you can imagine except for the cash to pay for it all.

Think of it as human history's largest yard sale from people who just assumed it could happen to everyone else.

But not them.

Any questions?

"The last time that the S&P 500 and the VIX were headed in the same direction in this way was when the dot-com bubble popped in March 2000, and the tech-heavy Nasdaq plunged about 80% from its peak to reach a trough at a six-year low in October 2002."