Friday, September 18, 2020

The Con Job Is Complete

Contrary to ubiquitous belief, Disney markets are not as good as they sound...

What we are witnessing is the reverse engineering of social mood by global central banks. While privately they may fret over the valuation bubbles they've generated, the fact remains that they want everyone to be fat and happy. Why? Because this is how the whole game works. Imagine if global gamblers actually took into account the imploding economy and the total lack of visibility to forward earnings, then the stock market would trade at a much lower level. So instead, central banks use their liquidity gimmicks to bid stocks up to unsustainable levels. Hoping that the trickle down fake wealth effect will produce the desired result.

I call this Jedi Mind Trick, Monetary Euthanasia, because it allows everything to fall apart in real-time while sheeple pretend everything is normal. 

It's a denialist paradise.

Any questions?

"Just 16% of respondents said they expected the economy to worsen in the year ahead, the smallest share since 2015"

What we notice about this consumption sentiment chart is that it's three wave corrective. And the "six month" high headline omits the fact that it's still at a seven year low:

In the process of creating this all important denialist delusion, central banks have created what I call one way rigged markets. Meaning they go one way up to unsustainable valuation, and then they roll over and crash one way back down to reality. During the levitation process central banks monetize as many skeptics of Disney markets as possible to ensure everyone gets on the same page and on the same side of the market. The Japanese have seen this movie many times, which is why they no longer trust their stock market.

This week, monthly option expiration manipulation enabled Skynet to save the casino from implosion, during the busiest IPO week of 2020. All while Tech stocks continued imploding in real-time. No small feat of market manipulation. We will find out next week how much it really cost to keep gamblers in the casino for one more week. Although, clearly in this environment of massively rigged markets, one would be a fool to predict one day to the next. I would point out that post-FOMC through the OPEX window was down three days in a row. And the S&P 500 closed below the 50 day moving average today, for only the first time since this rally began back in March (and since the 50 day (blue) was regained):

This week, the Tech bubble continued to deflate because both sheeple and fund managers alike have been conned into believing that the economy is actually improving.

Now, they are ALL trapped in a lie of biblical proportion. And complacency is rampant. 

QQQ dollar volume is sky-rocketing due to this massive rotation. Gamblers betting on a v-shaped recovery in their brokerage accounts have forgotten the law of re-test.

"The highly anticipated public offerings that have flooded Wall Street in recent days hobbled the stock market this week, CNBC’s Jim Cramer said"

“All the great earnings in the world won’t save this Humpty Dumpty market if we keep getting slammed by people selling good stocks to buy the smoking-hot, 100-times sales IPOs”

In summary, drink the Kool-Aid at your own risk. 

It's all 100% fraud. Intended for people who vote for that sort of thing.