Whenever markets indicate historical periods of instability, I have a bad habit of recording the bubblevisions for their various reactions. In fact I still have most of the DVD recordings I made of CNBC during the key dates of the 2007-2009 financial crash just for personal reference and entertainment purposes when things start to get wild.
Things are now starting to get wild.
Thus I fired up my recording of CNBC’s Fast Money from tonight and low and behold their “buy even in the depths of hell” bull Tom Lee was on. He looked to be coming off of a three day bender or getting hammered on some long positions for which he took a deep enema on based on his appearance. Of course he called today no big deal and a buying opportunity in select areas of the market.
You know, sort of like buying a bag of potato chips on the 3rd deck of the Titanic when cold water is washing on your ankles and the concessionaire telling you that it’s there to keep the passengers refreshed.
This is a very, very dangerous moment in the markets. I warned this morning that and true to form, institutions and the “big money” were selling into every rally and today’s bounce would be no exception. Technically the market is broken with some members of the retail investing club thinking they can beat the market but reality is about to hit them in the face like a margin call in October of 1987.
Thus far tonight, futures are down but the night is young. Pay attention to the bond market, Shanghai, Hong Kong and how Germany opens. If it is another night of heavy selling, it is obvious that the Communist Party of China is going to bury foreign investors and rescue only domestic bagholders to some degree when Evergrande is absorbed by the PBOC.
Meanwhile, the Federal Reserve is going to announce their equity positions at 2:00 p.m. ET tomorrow so if they pull a shocker and decide to reduce mortgage bond purchased to “cool” the market but increase government bond purchases, that just might be the trigger for the next leg down.
And an indication that Jay Powell is long munis.
For what it is worth, I will be commenting via my Telegram account after the minutes are released.
Meanwhile, tune in to see if the markets tank again tomorrow due to a lack of support from Pelosi and Powell resulting in a hard leg down below the 100 day moving average and soon to test 200 DMA. Because it’s not their fault, they are printing money, it’s the that damned cat that will not die and bounce like it is supposed to.
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