Can’t say I didn’t say “heads up”. I mean, that was a Triple-7 climbing out and they do tend to drop things. Well, Tim Knight was kind enough to observe the Plunge Protection Team in the Monetary Politburo stepped in with still more debt/inflation for American households to prop up the Money Class. But let’sContinue reading “Wedges Broke to the Downside”
Category Archives: Asset Bubble
Cross-Asset Complacency at 20-yr High
What can possibly go wrong? Well, here’s JPM’s John Normand ,head of cross-asset strategy, (courtesy of ZeroHedge): https://www.zerohedge.com/markets/complacency-20-year-highs-jpm-models-warn-imminent-correction Current readings for individual indicators and the composite are summarized in charts 3 and 4. In Chart 3, four of the seven cross-asset measures have moved beyond the levels that have preceded previous corrections (short and long-term valuation, positioningContinue reading “Cross-Asset Complacency at 20-yr High”
Deja Vu All Over Again: 50 DMA Reconnects
February 2020: February 2021: Sven Henrich (Northman Trader): https://northmantrader.com/2021/02/09/signal-fire-3/ No, this market is really not behaving that much differently from the one that led to the February 2020 top. Back then of course the Fed too was printing running their Repo program having cut rates three times already, now of course printing still $120B aContinue reading “Deja Vu All Over Again: 50 DMA Reconnects”
Resisting Your Bearish Impulses
Evil Speculator (https://evilspeculator.com/the-skew-must-flow/) offers some great truths: Markets move 87% of price in only 11% of the time, that is both combined to the up side and the down side. Within that 87 percentile markets either go UP or push SIDEWAYS 80% to 90% of the time. This means rising or range bound markets representContinue reading “Resisting Your Bearish Impulses”
Knock Knock Knockin’ On Inflation’s Door
Brian Wesbury, Advisor Perspectives: https://www.advisorperspectives.com/commentaries/2021/02/08/the-return-of-inflation Combined, Americans saved about $2.9 trillion in 2020, more than doubling the previous record high of $1.2 trillion in 2018. As of the third quarter of 2020, the amount Americans held in checking accounts, savings accounts, time deposits, and money market funds was up $2.8 trillion from the year prior.Continue reading “Knock Knock Knockin’ On Inflation’s Door”
Oligarchy and Decapitalization
Charles Hugh Smith: http://charleshughsmith.blogspot.com/2021/02/the-top-10-is-doing-just-fine-middle.html The Top 10% Is Doing Just Fine, The Middle Class Is Dying on the Vine I’ve been covering the decline of America’s middle class for over a decade with charts, data and commentary on the social depression that has accompanied the decline. While there are many mutually reinforcing dynamics in this 45-year decline–demographics, globalContinue reading “Oligarchy and Decapitalization”
Long Acme
From EvilSpeculator: https://evilspeculator.com/long-acme/ Social media giants have been channeling their inner Wile E. Coyote over the past few days for rather obvious reasons you are most likely aware of but which clearly fall outside the context of what we do and worry about here at Evil Speculator. Again, there is a myriad of places thatContinue reading “Long Acme”
A Funny Thing Happened on the Way to Wall Street
Per Slope of Hope: https://slopeofhope.com/2021/02/a-funny-thing-happened-on-the-way-to-wall-street.html#more-193031 Originally published by friend-of-Slope MoleCool, AKA EvilSpeculator: So a funny thing happened on the way to Wall Street last week. A rabid rabble of Robinhood retail rats on Reddit took advantage of a perceived market inefficiency in Gamestop (GME) and decided it would be a fun idea to drive up the stock and in theContinue reading “A Funny Thing Happened on the Way to Wall Street”
Pay No Attention to the Man Behind the Curtain
Charles Hugh Smith: In effect, Greenspan et al. assumed there would always be a pool of buyers willing to buy whatever stocks sellers were unloading. One potential pool of such buyers are those traders who bet on a market decline by selling short–selling shares at the top that they would buy back after a decline, pocketingContinue reading “Pay No Attention to the Man Behind the Curtain”
High Prices and Low Supply
This is the 4th straight monthly decline, while contract signings are still up 22.8% from a year earlier on an unadjusted basis. By region, pending home sales declined 3.6% in the Midwest, the fourth straight decrease. In the largest U.S. region — the South — contract signings edged up 0.1%. Pending sales were unchanged in the West andContinue reading “High Prices and Low Supply”
Econophysics2020 