Friday, September 11, 2020

Trump Casino Is Rigged. To Explode.

All casinos exist to monetize idiots. Trump's casinos are no exception...

Machines, central banks, and psychopaths are herding gamblers off a cliff:

Pandemic depression, mass unemployment, vaccine uncertainty, existential election, ongoing rioting, stimulus clusterfuck, record wildfires, bear market, fastest Tech crash on record.

What's not to like in Trump Casino?

I said a week ago at the top that we were being inundated with record bullshit. One week later and at the cusp of total implosion, the bullshit has been amplified 10x. What we are witnessing right now is a RECORD pump and dump into an imploding market.

First off, traditional IPOs are ramping up big time, racing to get ahead of the implosion:

Secondly, there are a record deluge of "blank check" pump and dump schemes coming to market as well:

"SPACs raise money in an IPO, and then place it in a trust while the sponsor searches for a business or businesses to acquire, usually within a two-year period. The companies then complete a merger and the target becomes a listed stock"

Of 223 SPAC IPOs conducted from the start of 2015 through July, 89 have completed mergers and taken a company public..Of those 89, the common shares have delivered an average loss of 18.8% and a median return of minus 36.1%"

Wall Street sees the general public and their monthly retirement savings as an endless wellspring of fresh capital to implode.

Which gets us to Trump Casino. 

What a week in Disney markets. Only market manipulation using options volatility suppression kept this con job from exploding. Every major index ended the week at key life support on the 50 day moving average. The Nasdaq has been down five out of the past six trading days and yet complacency is rampant. Hedge funds monetized their hedges this week which drove volatility lower even as the market declined.

First, here we see the S&P 500 basically at the same level it was in February when the wheels came off the bus. And yes the last cliffhanger was also a Friday (Feb. 21st):

For this chart I manually calculate dollar volume (lower pane). The main pane uses "equivolume" wherein each candlestick is sized relative to the amount of volume.

If this much volume came into play at the 50 day, picture what happens when it breaks:

Momo Tech is not only below the 50 dma, it backtested it and failed today:

The Biotech bubble has officially imploded, as concerns over the timing and efficacy of a vaccine continue rising.

Hedges were monetized this week because everyone knows this is just a correction and not another crash like the one in February that came as total surprise:

The call/put ratio is three wave corrective this week off of last week's decline, showing that social mood is still alive and well in Trump Casino:

You know you're an idiot when you think THIS is a new bull market:

In summary:

One more gap 'n crap, and denial time will be over.