Santa Bear is Coming To Town

by John Galt
December 24, 2018 23:10

You better not pout,
But you might as well cry,
Even scream a little,
I’m telling you why,

Santa Bear is coming to town.

He knows when your long Apple,
He knows when your short vol,
He knows when you’ve bought XLF,
So he takes you for a fall!

Ohhhh, you better just shout,
Even scream and cry,
Margin call is coming,
I’m telling you why,

Santa Bear is coming to town.

The CNBC screen grab says it all:

Yup, the worst Christmas Eve for the stock market in history.

I’m not going to fly off the handle with crazy predictions, insane statements about a Great Depression starting next Wednesday at 2:37 p.m. Eastern Time or the other blather you will hear from the gotta sell you a water filter doomster industry. However, I will stay that President Trump had best remove his finger off the Twitter keyboard and start listening to the financial industry which is warning that the continual blundering from one unforced error to another will eventually doom not just the U.S. economy, but the world economy.

In the next period up until January 7, 2019, if there is no Santa Claus/post-Christmas low volume holiday rally, it means that January and February of next year could mark the first substantial bear market move since 2008-2009 but worse, a much more sudden move like 1907. If there is a rally, then watch out for the sucker’s call to buy in low at “great valuations” because the airborne flung fertilizer has already hit the counter rotating air deflection device (TSHTF) and most have no clue yet as to why.

Buckle up ladies, because our current crop of political and financial leaders are the worst we have seen in at least 3 generations.

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