May 5, 2019 23:10 ET
We are all going to die! Well, maybe not tonight or tomorrow, but hell, this action does not justify a full blown DEATHBURGER alert….
It is time to panic a tad bit, not much, just a wee bit, if you have not already.
No, John Galt is not dead, I just smell like slathered up tanning lotion and cheap tequila. However, the market smells worse!
Chiner, Chiner, Chiner, as El Presidente Trumpo likes to say:
So what is really happening?
Nothing. Ignore the sudden plunge in U.S. equity futures which was WAYYYYY overdue. The markets are due for another correction. Period. End of Conversation.
However, your favorite writer, the EEOOL (Exalted Excellent Observer of Live), yeah, me, can predict one thing:
The market is about to tank and tank hard.
I offered a hint several weeks ago but due to uh, er, legal constraints, could not speak. HOPEFULLY, after this mini-crash of 10-14% I can speak freely just a tad more.
I expect markets to tank on Monday by 500+ points at the worst. Rally on Tuesday. Then the Chinese trade situation deteriorates overnight and by Wednesday another 500+ point cratering. Thursday morning rallies, then pffft, fades to a 300+ plus crash into the close.
AFP. (That’s not the French news agency for my new readers, that is ABJECT FUCKING PANIC)
Why? Trump gambled and lost so now he has to show some balls and hope that heading into the Memorial Day holiday a distraction of a major equity market correction then “heroic” trade deal recovery in June sets his re-election on auto-pilot.
No, not TSLA flaming auto-pilot, but more like Reagan’s. If he is correct by gambling on this, he’s a hero, no matter how shitty the deal is. In reality? The debt time bomb is ticking and no later than 2021, the banking situation deteriorates and spirals out of control.
If I am right, the shorts, crypto, and goldbugs rape the markets for huge returns. If I am wrong, it’s 1925 and Trump is Coolidge fucking the bull statue on Wall Street like a boss.
Just a warning on the latter scenario however:
Bond yields for US Treasuries would not be below 3.50% if there is not a massive deflationary debt correction on the horizon.