S&P 500 tech stocks have now fallen for 9 days in a row. The last time tech stocks declined for so many days in a row was in 2012, and that was the only other time in history when we have seen such a long losing streak. As I have stated before, the post-election “Trump rally” is officially done, and the market is starting to roll over as investors begin to realize that all of the buying momentum has completely evaporated. Tech stocks tend to be particularly volatile, and so the fact that they are starting to lead the way down should definitely be alarming to many in the investing community.
Of course it isn’t just tech stocks that are falling. The Dow was down another 59 points on Wednesday, and the S&P 500 has closed beneath its 50 day moving average for the very first time since the election. For those that have been waiting for a key technical signal before getting out of the market, there is one for you. Continue reading »
In retrospect, those who said Trump will ultimately do Wall Street’s bidding, may have been correct all along.
About time, ZeroHedge!
I’ve always warned that Trump, like Obama, Clinton, Bush, Putin, Merkel, Cameron, May, Sarkozy and Hollande, is a Freemason and a Rothschild puppet. Continue reading »
One of the traditional signs of market tops is individual investors finally succumbing to the lure of apparently easy money and pouring their savings into the stock market. In the past this dumb money flowed into equity mutual funds in general. But today it’s favoring exchange traded funds (ETFs) that, rather than trying to pick winners, simply offer exposure to sectors or broad market indexes.
(Wall Street Journal) – Investors poured $62.9 billion into exchange-traded funds in February, pushing the year-to-date world-wide tally to $124 billion, the fastest start of any year in the history of the ETF industry, according to data from BlackRock Inc. Continue reading »
Marc Faber, known as ‘Dr. Doom’ for his pessimistic views of equity markets, has warned investors that US stocks are vulnerable to a seismic selloff, which could start any moment.
The Swiss investor doesn’t expect the rally’s disruption to be evoked by any catalyst, as the markets are overbought and sentiment is way too bullish for the so-called Trump rally to continue.
“Very simply, the market starts to go down. As it goes down, it will start triggering selling, and then it will be like an avalanche. I would underweight US stocks,” Faber said in an interview with CNBC.
This bearish forecast is not tied to President Donald Trump, according to Faber. Continue reading »
And what could possibly go wrong?
H/t reader squodgy:
“Of course, he’s right. We all know it, we’ve watched the manipulations.
We’ve seen the Shipping Activity Index (BDI) sat in the gutter.
We’ve seen Caterpillar report 5 consecutive years of continuous order book drops.
We’ve watched the food stamps grow to one third of the population.
All these show total disconnect from Wall St & the Fed bullshit manipulation
Stocks prices continuously rise as a result of false purchases by the banks and buy backs by the Companies…..but activity, earnings and returns are rubbish.
Now the truth outs. We are slap bang in a depression & Trump has been set up to take the fall for it.
Yet, being an astute businessman, he knew all this already, and his crowing is equally false. He knew he was going to be the scape goat.”
* * *
* * *
Count one of Hillary Clinton’s biggest financial backers, billionaire Warren Buffet, among the biggest fans of the “Trump rally.”
In an interview with Charlie Rose recorded on Friday, Warren Buffett said that since the election day, Berkshire Hathaway bought $12 billion in stock. This was a change in strategy for Buffett, who as it turns out was a net seller in the first nine days of the month, when Hillary seemed like a guaranteed winner in the November election, one which Buffett was selling into.
“We’ve, net, bought $12 billion of common stocks since the election,” he said in an interview with Charlie Rose that aired on Friday. Buffett didn’t identify the securities that he picked. As of Sept. 30, Berkshire had an equity portfolio valued at $102.5 billion. Continue reading »
Full article here:
by James Corbett
January 29, 2017
Congratulations, America! The Dow Jones Industrial Average has just rolled past 20,000 for the first time ever! Let the fireworks fly, because the ticker tape parade is about to begin! Continue reading »
Internet data mining expert Clif High uses calls what he does “Predictive Linguistics,” to mine the Internet and collects billions of data points to produce forecasts of the future. High has predictions on Trump, gold, silver, housing, stocks, bonds, the dollar, interest rates and even new discoveries that will change the world that are coming out of Antarctica.
H/t reader squodgy:
“The CRASH is already in place for those not in the manipulated financial world.
But Mr High says end Feb through March & April will have notable signs of correction and reality checks.”
* * *
“This time is different”, or maybe it’s just 1929 all over again, because according to Deutsche Bank, after 8 years of easing sent the S&P to all time highs, the only thing that is more bullish than a dovish Fed, is a Hawkish one, and as a result no matter what the Fed does tomorrow, and how it hikes rates, equities can only go “higher.”
* * *
Back in April, we commiserated with BBG ex-trader and commentator, Richard Breslow, who when looking at the ongoing events in markets, had a near nervous breakdown. For those who missed it, here are the key excerpts:
Trading is a hard business. The world is becoming a more complicated place: a number out of China may do more to the price of your U.S. shares in a retailer than, well, U.S. retail sales. Yet creeping, dangerously, into the investment advice dialog is the argument that buying and holding no matter what the event is the winning strategy. If you ever needed a “past results don’t guarantee…” disclaimer it’s especially true now. Continue reading »
Last April, we commented on the most blatant (pre) revolving door we had ever seen at the SEC (and there have been many): the departure of the SEC’s head HFT investigator, Gregg Berman, who during his tenure at the agency (whose alleged purpose is to keep the “market” fair, efficient and unmanipulated) did everything in his power to draw attention away from HFTs. He did that, for example, by blaming Waddell and Reed for the May 2010 flash crash. This is what Berman, whose full title was the SEC’s “Associate Director of the Office of Analytics and Research in the Division of Trading and Markets” said in the final version of the agency’s Flash Crash report: Continue reading »
Prepare for the coming crash. (It could already happen this month.)
Since the early 2000s, I’ve been describing a coming economic depression that will dwarf the one that began in 1929. But this is by no means guesswork or crystal ball gazing. Whenever a country (or countries) creates debt that is beyond the level that they can ever repay, an economic collapse is a near-certainty. Today, many jurisdictions, particularly, the US, EU, UK, Canada, etc. have created debt that is far beyond anything the world has ever seen. This assures us that the corresponding collapse will be of epic proportions.
Of course, I’m frequently asked, “When will it happen?” This is all but impossible to predict, but to be perfectly honest, back around 2006, I was guessing, “probably by 2012.” Although I predicted the minor crash of 2008, I felt that the bigger jolt that’s still coming would have been on our doorstep by now. Again, it’s not all that hard to predict the events if you do your homework, but predicting the timing is another matter.
However, I’ve continued to repeat my general principle that when an economic unraveling of major proportions is coming, significant events increase in frequency and severity. Continue reading »
Volatility is the name of the game. Stocks are acting up, but standing strong. Oil is propelling higher and the US dollar is falling. Turmoil around the world has never been higher and an ominous shadow is lurking in the background, ready to strike.
The situation that we now face is ultimately going to end in a collapse of epic proportion. The financial world is now a ticking bomb that is just waiting to explode – I know this, you know this and even if the masses don’t, they can feel it in their bones. Continue reading »
Continue to prepare for collapse.
99% of the people will get totally destroyed financially.
“By failing to prepare, you are preparing to fail.”
Aug 13, 2016
* * *
* * *
Soros Fund Management has increased its bearish bet against US companies on the S&P 500 index. Its billionaire owner will make money if the index collapses.
The Standard & Poor’s 500 is an American stock market index based on market capitalization of 500 large US companies having common stock listed on the New York Stock Exchange or on NASDAQ.
The 86-year-old investor’s fund has reported it had arranged ‘put’ options on roughly 4 million shares as of June 30. This is up from 2.1 million shares as of March 31. Continue reading »
Russia’s MICEX stock index rallied to all-time record highs today. This is likely very disconcerting for The White House as since the March 2014 lows when they issued the following statement: “If I were you, I wouldn’t invest in Russian equities right now,” Russian stocks are up 60% – tripling the 19% gains in the S&P off those lows… Continue reading »
In a historic trifecta, yesterday for the first time this century, all three US indexes posted concurrent record highs. The last time this had happened was on December 31, 1999.
* * *
So there was renewed speculation if Icahn had given up on his record bearish bet. So when overnight IEP released its latest 10-Q, we were eager to find out if Carl had unwound his record short, or perhaps, added more to it. What we found is that one quarter after having a net short position of -149%, as of June 30, Icahn’s net position was once again -149%, or in other words, he has once again never been shorter the market.
* * *