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A Quick Market Note this Morning

It’s been a while since I’ve commented on the economy and stock markets so I thought I would drop this quick note for my readers to digest.

Okay, so that’s the brief summary is from used car salesman financial “news” television. The reality is somewhat different.

While some technicians are laser focused on price only, I diverge from their opinion due to the inner rot occurring beneath the surface of the major indexes. As new high prices occur on the NASDAQ, S&P 500, Dow, etc. volumes are decreasing, breadth continuing to deteriorate, and worse confidence fading. The high volume distribution in certain indexes and individual stocks did not happen if you believe the Bubblevision networks and the economy is going to soar even though 30% of the state governments want to import the Australian model of locking down Americans and shooting dogs at the pound to cure the China Virus.

Thus why what we are witnessing this week and next will in the end be somewhat irrelevant for the long term. The “virtual” Jackson Hole Federal Reserve meeting will happen this week which will end up with a statement from Chairman Powell that he’s still long the market so don’t worry be happy. The Bubblevision networks will proclaim all is well and those empty super market shelves you are seeing locally are not the droids you are looking for.

The truth is that anyone and everyone who can move markets left for vacation last Friday. If anyone thinks these moves are being made by the “big boys” this week and next it will only be because of a crash where a panic triggers automated selling. In the interim the political circus, disaster in Afghanistan, Grandpa Applesauce Chin’s cognitive deterioration, and massive supply chain issues is building cause for problems when the real money returns from the Hampton’s after Labor Day.

Enjoy the Labor Day holiday and remember what Big Brother Fed instructs everyone to do:

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