The doom is palpable.
One of my favorite accounts, of whom I do not always agree, posted a warning today on FinTwit (Financial Twitter) which is entertaining and a stark warning for the world to see.
ALERT: EVACUATE MARKETS— The_Real_Fly (@The_Real_Fly) October 3, 2023
Listen to me
This is not a drill and although you’re not serious people — I feel obligated to inform you of what is transpiring.
We have crossed the rubicon of oversold and done so along time ago. We are now ebbing, ungraciously, towards actual crisis —…
Of course, after reading all of it all I can think about is Mr. Powell riding in on a white stallion into the breech to save the markets and keep $AAPL above $150.
Then again, I have been drinking so you better buy some puts on that crap.
The reality is that markets are crapping the bed but on bad volume. This is not indicative, yet, of a major crash scenario occurring, although volume is picking up over the summer doldrums.
As I stated above, this isn’t about equities, gold, silver, copper, aluminum, corn, FJOC (See: Trading Places, please), or the Fed.
This is about the markets setting yields and, or, possibly losing faith in our current economic elites.
The bond market is taking a major crap yet DC nor the Fed seem to care:
Once this breeches 100, all bets are off.
Thus today’s low volume, yet improving over the summer move is one to note but not freak out about, right? Maybe you should. The internals were just plain God awful:
That’s an eye opener.
If this deterioration continues and a true capitulation occurs by next week, look for similar new highs, but tragically numerous new lows, in addition to 30:1 rations on the A/D line.
The market is broken. That is what the Fed wanted to attempt to refrain inflation. Look for a 10 billion share plus trading day coming soon; not total, but for each exchange. The exits are going to have to be expanded for the number of dead stocks walking to be offloaded.
Got portfolio insurance?
Asking for a friend.