Monday, December 14, 2020

All Aboard Super Cycle Con Job

Three years ago when the tax cut was passed we were told that 2018 would be a booming year for the economy. Of course it was all a massive lie. This last lie the sheeple bought with both hands will be of far greater magnitude and consequence, as it completes the super cycle top...

Jan. 26, 2018:

Dec. 1, 2020

When the tax cut came into effect in February 2018, the market peaked and  crashed. I think we all see where I'm going with this - This latest glue sniffing rally is on borrowed time and money. 

History will say that the tax cut rally was the left shoulder and the vaccine was the right shoulder of a head and shoulders top. 

Central banks have created epic distortions in financial markets by bidding up junk and insolvent assets to unsustainable valuations. Banks give a clearer picture of the underlying economy. Here we see that U.S. growth peaked in 2018 and from that point forward this has been a stimulus driven con job:

The junkiest stocks are now leading the rally while quality has been rolling over for months:

This is the point at which growth and cyclicals roll over at the same time. 

The total call/put option ratio has called every crash and correction for the past two years: