Welcome to the holiday season ladies and gents as America’s “strongest economy ever” has more cracks in it than a Los Angeles sidewalk after 7.0 magnitude earthquake. Everything is pointing down except inflation and our expanding money supply. The market rot has expanded and gotten worse in the last three weeks, the political situation is a disaster for the current junta, and internationally the EU has managed to destroy any semblance of a stable energy supply heading into winter.
Of course this means there is the potential for a lot of bad news ahead, especially for those con artists like Jim Cramer who now has appointed himself the Minister of Economic Propaganda for the Biden regime:
Ummm, ok. I guess old Jimmy boy is going to tells to buy more boom stocks like Robin Hood then:
The reality is that the supply chain crisis is about to get far, far worse. Retail sales disappointed this week not because of inflation and the insanity promoted on Bloomberg that “Christmas was in October” (I used to respect Mike McKee but that’s just blatant bullshit), the reality is that a store can not sell what it does not have. And with inflation taking a bite out of everyone’s pocket, especially the lower and middle class, expenditures on food, energy, and shelter are the priority, not Chinese crap.
Today is a quad-witching event and that means wild market swings from the open to the close as derivative positions are closed out for the year. I have no idea if the Fed is going to intervene one more time and buy stocks to prop the markets up on the close but if a high volume sell-off does occur, it could be a very bearish indicator for 2022. Why not the rest of this year?
Today is the last real trading day of the year.
After today only the remainder of the speculators, kids, and play at home types will remain. Everyone important who can move the market will be on vacation at 4 p.m. Eastern time today and after that the market moves are insignificant unless another last minute liquidation hits just before Christmas Day. I would expect another attempted “Santa Claus Rally” next week and just after Christmas if the historical pattern holds before a major bear market begins.
Stay tuned folks as the insanity we will witness today will provide hints of what next year will entail.