Sometimes there is just one classic song trying to send a message as to what the equity markets are trying to tell you.
Then you have idiots like this clown who just want to let Wall Street fleece grandma and grandpa’s last remaining dime to justify their television program and very existence:
Before I shred the carnival barker again, this quick reminder:
Please let me know how your BSC stock is doing today.
First of all, Jim has predicted zero of the last 5 recessions, market crashes, and worse his track record on companies like Netscape, AOL, Washington Mutual, and of course, Bear Stearns is abysmal.
Secondly, using the 1990’s is a horrid reference point when Mr. Cramer was accused but never investigated for alleged securities fraud by using his hedge fund and public media persona to manipulate stock prices.
Lastly, he’s on CNBC. That network might as well sell flooded used cars to little old ladies from Pasadena.
After all, they pushed the iPad on a stationary bike, how’s that doing now?
Now that the evening rant is off my chest, let’s review today’s disaster of a stock market which would make Jesse Livermore laugh his ass off at all the permabulls.
The chart above is of today’s S&P 500 where the market rallied sharply until 10 a.m. than than began a vicious cycle of intraday rallies, short covering, and liquidations. Who was liquidating equities and why?
When the big boys, the JP Morgans, the Goldman Sachs, the major pension funds, insurance companies, hedge funds, or large players decide to get out of their long positions, this is what it looks like. In the industry, it’s called distribution and if any of my readers have been listening to MacroEdge Radio on Fridays or reading these pages, we have seen this happen time and time again for a month now.
Why is this so important? Ma and Pa Main Street are not told about this by their “financial adviser” or 401K manager. Your 25 year old kid wearing the cheap suit in your local bank branch isn’t going to answer the phone when your AI stock takes a 20% dump just like the .com bust in 2000. This is major money telegraphing that the economy is not all daisies and perpetual up days, but that real structural problems in the market and global system exist.
In 1980, when Federal Reserve Chairman Paul Volcker executed a political rate cut during the summer because he and his crew “thought” that inflation was lessening at 7.5% annually, the markets rallied briefly. Then as inflation took off above 11% he had to rapidly raise rates to save the dollar from collapse and prevent hyperinflation from taking over the US economic system before it collapsed.
What did this do to unemployment in our nation?
Needless to say, right after the election when the monetary impacts of the sudden rise in rates lag impacted the economy and unemployment skyrocketed. The chart above is the Fed’s and media’s favorite version of U-3, however it is non-seasonally adjusted, which means the artificial garbage they force feed the markets is excluded.
Does anyone think we’ll see the real data before this current Fed’s mistakes are revealed to Main Street and the pain of long term stagflationary recession hit the average soul? I think not.
Thus why today’s stock market action is more important than one can imagine.
If anyone thinks that it was positive, turn them off. Remember the institutions have more data, better data, and will not share it with the public until it is too late. Use sources like those at MacroEdge.net, which I contribute to, to evaluate the real status of the economy.
Or just do what Jim tells you.
And enjoy living in a government welfare home in your retirement and eating Soylent Green.
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