The movie “Downfall” inspires nothing but really morbid memes and this market, despite being up over 400 Dow points does nothing to prevent even more morbidity and dark humor from being created.
Probably not the best in taste for one of my articles, but screw everyone who is offended. Grow a thicker skin.
The reality is that just a cursory look at the markets since last Monday’s meltdown is that volume, breadth, leadership, and worse, sentiment is nothing impressive. In fact, the volume is the biggest issue because at 3:50 p.m. I wondered if the computers even got bored trading with each other. Has everyone really gone nuts and decided to go to St. Barts in the middle of Tropical Storm Ernesto?
Trust me from someone who just recovered from flooded roads everywhere in Sarasota, tropical storms suck. And one named Ernesto is going to really spank you losers hard by watering your drinks faster than a tourist trap in St. Armand’s Circle or Duval Street.
The new proclamation from the permabulls and politically bought off “investment advisers” is that “it’s different this time” nonsense but hey, we’ve heard that before, right?
If the S&P 500 breaks above the 50 DMA with volume, which it doesn’t have and breaks over 5,600 then maybe I’ll shut up, salute the weird guy with the square mustache screaming “gaps” and capitulate like Mike Wilson begging for his job in the break room at Morgan Stanley.
Or not.
Meanwhile, over at the NASDAQ, meh, not so hot despite all the sexy action for the day trading 0DTE clowns:
Mama ain’t going to like her 401K statement if you’re heavy into tech dude.
It could be worse, you could be one of the semiconductor longs though:
For some reason, I just don’t see the 50 DMA making it, however I have been wrong before and your mileage might vary.
The big boys in the SOX lead the way, right? Well, here’s Nvidia’s recent chart:
But the CEO signed boobies, right?
Meanwhile, over at AMD, the chart looks worse and worse with each passing day.
That is about to engage in a “Death Cross” pattern which will lead to one hell of a lot of technical selling. A journey to the 100 price level, in this author’s opinion, is a when not an if.
Maybe the “financials” are doing better since they are closer to the soul of the consumer or whatever that nonsense was being sputtered on the Bubblevisions from earlier today. Let’s check out Citigroup, they’re an awesome company now, right?
Yeah, that was a cheap shot. Then again, I’m not in it and if I were, I’d short it to $10.00 per share ($1 in reality).
Let’s go to another “closer to the heartland and consumer” bank on a national scale, Wells Fargo:
Welp. That chart looks like unadulterated dog crap. I guess the consumer must not be able to pay those 32.95% APR credit cards off any more. Or their car payments. Or their personal loans, etc., etc…
Enjoy the rally gang, it’s a lifeline. But as I wrote in The Bears Are Trying to Send a Warning the markets are still talking about the past, present, and future but few are listening.
Buckle up, the next 90 days are going to be the wildest our nation has seen since the 2008 acceleration of the Great Financial Crisis.
Just remember what I warned about: EVENTUALLY all of the open gaps to the downside shall fill also.
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