Those of us who sound like the old guy yelling at clouds or at the morons who leave their shopping carts in parking places because someone is too stupid or lazy to put it out of the way are going to totally relate to this rant.
And if you, my fair reader, is one of the morons who leave your shopping cart in a parking place or think “I’ve got a new formula you old guys never thought of to beat the markets” on both counts I say eff you and eff you.
So what am I referring to?
Today’s market action is indicative of a massive ‘sentiment’ change in the US stock markets. However, I dismiss sentiment as one of those measures meant for losers who will not admit their investments were 100% pure unadulterated dog shit wrapped in cat shit. Those who have not seen the movie will not understand that reference, but I digress.
Before going into today’s so-called nightmare, let us all take a trip down memory lane to recall what happened were all been there and done that.
March 2000
The internet was the future. Everyone was going to have fiber optics in their home and installed in their butts for maximum internet speed. A company called Pets.com has figured out how to ship 50 lb. bags of Alpo profitably to one’s home. And of course everyone knew that Nokia and Blackberry had a monopoly on the budding “smartphone” market, right?
Thus when these headlines appeared an oh crap moment did also:
Nasdaq takes a breather – March 13, 2000 CNNfn
What did that breather end up doing?
Now think about this. Was today’s selling “big and smart” money liquidating their positions and getting out?
Possibly a continuation of a process that began a month ago. However what about retail?
Dumb as a brick as ever boys and girls.
Here is one of the NASDAQ penny stocks trading 586 million shares and still unable to finish above 50 cents per share:
Love those EPS of losing $8.24 per share, yeah, sign me up for that punishment.
The market breadth was meh, the volume, meh, the new highs/new lows, meh.
From the WSJ Market Data page:
No signs of fear, no signs of capitulation, no signs the average schmuck fears a bear market. When the A/D triggers to a 95:1 down versus up ration and volume substantially more than 10:1 down versus up, it gets interesting. In the mean time this is nothing but bear market foreplay, much like March of 2000, where institutions knew the gig was up and started to liquidate out of fear what was next.
The difference this time?
President Instability could trigger unforeseen market reactions due to his geopolitical or tariff decisions which could push the markets to extremes to the upside or downside.
Do with that information as one pleases, but that’s just my warning for today. Odds are the American speculative public will see a limit down day and once the rookies see that happen to their portfolios, options, or whatever new investment con game they choose, the stock market and brokerages will see fear and loathing for many, many years to come.
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