Market Analysis

Look behind the Curtain

I’ll post a more in depth technical update this weekend in the Weekly Market Brief, but as you head into the weekend keep the chart below in mind when you see all these new highs and breakout headlines.

Yes we made new highs and had a big OPEX rally, but that was not a surprise, it was already in the cards as I posted the Friday before:

What’s missing here is what was required to get the breakout: 4 unfilled gaps on $SPX, an absolute $VIX crushing to 12 and for what? For this?

Small caps, banks, $DJIA all negative over the past 10 days. No breakouts. No Sir. It’s tech and a smidgen of $SPX and it took a full point of additional $VIX compression over the past Monday 10 days ago. And you know where I stand on the $VIX (see $VIX launch).

Never mind all the negative divergences on the breakout. I’ve pointed to some on my twitter feed, I’ll discuss them further this weekend.

It often pays to look behind the curtain. This rally is not as strong as it’s advertised to be.

This is its basis:

Have a good weekend.

For the latest public analysis please visit NorthmanTrader. To subscribe to our market products please visit Services.

All content is provided as information only and should not be taken as investment or trading advice. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. For further details please refer to the disclaimer.

Categories: Market Analysis

2 replies »

  1. This 3 month frothy Treasury rape frottage by Fed-fed (black) helicopter play money for the incestuous buyback boys’ circle jerk Ponzi – the best 2018 Christmas gift ever, of plutocrat pet poodlePowell as tergiversating gimp submissive; who is an unelected omnipotent fiat deity who rolled over to show his unprincipled “gooooood boy”-free money fest belly to the 1% who are now almost literally stealing ALL of the world – is remarkable in shameless grift even beyond the post-TARP decade of arrant QE welfare stipend (of trillion$), which was surgically targeted for the kleptocratic miscreants who perpetrated the Great Bush Recession/almost-Depression. This vertiginously manicured chump pump bull “rally” by CB cabal blunt force trauma of trillion$, MUST somehow miraculously escape the titanium chain shenanigans of debt-as-economy in perpetuity or all the most gruesome Orwellian tropes will literally be feasible.

    A vicious mean-regression karmic enema is the only salvation of not just capitalism but of any sort of self-determinism and freedom itself, for 90% of the entire writhing human mass of hope and opportunity.

    Powell’s votary conscription into the “no risk for rich people”, in service to the meta invasive monster of the trickle- nay! dribble-down-economy reminds me of a (now) old song by The Vapors – Turning Japanese (I really think so!). poodlePowell has not only given acfual free market capitalism and egalitarian principles of fair opportunity price discovery the finger – but indeed has turned it into a bathetic kabuki like he was Ceaser in The Hunger Games, sanctimoniously fluffing the dystopian victims of a gruesome freedom hoax. is now a nascent American economic doppelgänger of Abe’s soft fascist socialism bastardization, de facto transmogrifying the assets of the markets into outright parallel government ownership (mostly ubiquitous debt reification as currency and collateral Home Team fluffer coordination of a massive scale.

    Then there’s the institutionalized SEC no-seeum rackets of peripheral market wealth arrogation, like the triple & quadruple 3-month out rank speculative pools of loophole lucre plucked ex nihilo by privileged LIBOR racketeering; insider buyback HFT/algo collusion; tenebrous banksters “sno-balling” the entrails (commodity cornering, dark money laundering, Frankenstein compositions like CDOs, private usurious lending rackets); coordinated monetizing propaganda jawboning to steer algos and the paltry retail chumps into the stockade of predestined, for the most part, narratives – from which their assets will then be swallowed by unerringly propitious spikes or red daggers.

    With technological manacles on currency-as-freedom, autocratic kleptocracy market machinations, and NSA ilk nanny-bank proctology of any existential transactional choice – I fear that without a vicious and plenary collapse of this almost Matrix engineering of markets, that the world is doomed sooner rather than later. Maybe I’m just a hyperkinetic creative type who overthinks possible outcomes. But no way is the concept of “free markets” anything of the sort for most; it’s like saying the hyper processed, wholly chemically comprised and lab-engineered bio-addictive foodstuff drug – an ice-cream flavored food-derivatives plastic concoction from McDonalds is actually a milkshake.

    Here’s petitioning the free-market forces that still have mettle and consequence can drink poodlePowell’s McMarket monstrosity of a milkshake with one gloriously equalizing catastrophe.

  2. I appreciate sooooo much when a reader is moved toward an insightful, artsy, valid thought-provoking response! I too see myself as moving down a path with TONS of cow-poop we are cautioned to stay on the path to avoid. With the #CB.. the #CentralBankCabal leading us as though we were #LemmingsFollowingACallToTheCliffOfProsperity! Getting to the #CBPonziParty late virtually GUARANTEES success as these markets can only go one direction as #MSM, #MainStreamMedia guides us further and further toward #TheOrgasmicAbyssOfFinancialSecurity! I know full well, that.. #TheMoneyUnderMyMattressIsNotSafe. But, it is safer than doing something silly with it! Caution here friends…


This site uses Akismet to reduce spam. Learn how your comment data is processed.