Friday, July 29, 2016

LEVEL 11 Fake Believe

This week U.S. GDP turned -2% negative ex-deficit - what an honest person would call "recession". What Obama calls 'Conomy...




Recession stocks lagged badly as the financial cycle finally converged with the economic cycle...



USDJPY resumed its epic collapse



Deflation resumed its downtrend, and oil dutifully followed...



Junk bonds, Energy stocks (aka. Exxon), and Emerging Markets rolled over in the direction of oil...


Global financials resumed their weakness as the next rate hike was postponed until never...







Cyclicals enjoyed a good end of cycle short-covering bounce

Avis car rental:



Valero Refining



Macy's



Growth and momentum played catch-up sort of...


Skynet catapulted Big Cap Tech and still couldn't get the Nasdaq to a new high...





Complacency was rampant as the VIX hit the lowest level since last August

An entire year of risk totally ignored


"When you need that extra push over the cliff, where can you go? To 11. Exactly..."