DID YOU BUY INTO THE HUGE STOCK RALLY?
The two traditional ruling parties in France were derailed on Sunday. A new Party won and an old Party on the far right Won. Both winners in a run off wish to leave the EU. This policy if followed may help France and crush the EU. Italy is going to leave when it votes next year. The EU can not remain intact with France and Italy leaving. Others are rallying up to leave as well.
No one knows what will replace the EU. And EU currency is going to become very volatile before it becomes utterly worthless.
So why would this drive a record pace to stock prices?
Against what else?
Well, Syria has the largest INDIVIDUAL asset freeze of its leadership and wealth class who are underwriting the SARIN GAS manufacturing. That is an escalation. Just in.
Venezuela VICE PRESIDENT and leadership were sanctioned and accounts frozen for dealing drugs as the national government sponsor level. That is an escalation. Just in.
Trump has invited all 100 Senators to meet at the White House ( right now ) on his NORTH KOREA BRIEFING. This can change world orders in and of itself and fast. Markets will be unable to even manage liquidity calls with such tension rising. Experts say we are at the brink of World War III now.
North Korea has stated it will make the first strike a preemptive strike on the US ARMADA as a display of its powers that are appropriate – and that Trump is warned to keep such capacity out of their sphere of influence. Keeping in mind North Korea is a rogue nation with a million person army that is a fully militarized nation. North Korea is a small little country that if they attacked the US and South Korea ( their own people ) the war would be over quick. In a short time, there would be no more North Korea at all. That would be terrible but a consequence. This is not like a conventional war. This is a war about a gang of crazy brains having powers of mass destruction with delivery systems. That is an item they could have negotiated away for prosperity but elected to keep for posterity. The result is the WRONG CHOICE and TRUMP IS the WRONG GUY to test it out on.
As this tension sets into play and our carrier arrives on site this WEEK we have confidence and lower risk in the world?
And stocks soar against this rising risk?
Retail sales are so in decline in over build North America BEBE just stated it would close all 170 stores and go out of retail. Oceans of others are following behind them as the retail sector collapses. This is a reason to have record stock sales? Prices?
The NASQ achieving its 6000 record breaking status – is what – 20 stocks are driving the entire upside – the base of stocks on NASDAQ have nothing to do with the 20 drivers – that is a weak structural base – an upside down pyramid – a wobble – a wheel out of balance.
Fools rallies are when fools rush in on euphoric emotion. What created the rally? Data. Software reacting to data. The markets can be volatile with up and downs like a drunken sailor before SUPER CRASH.
The contagion event that will spark SUPER CRASH is unknown as to the WHAT or the TIMING. We can suspect but we can’t define with precision the trigger.
The wilder these swings up and down – the more condensed the TRADING WAVE PATTERN. As the WAVE PATTERN CONDENSES further it leads to a SUPER WAVE which will become the SUPER CRASH.
We will then not see another boom like this last one in your adult lifetime. So this is it. Play it out accordingly watching your risk when liquidity dries up completely. As it shall.
Today we have:
* Record stock prices
* Rising bond yield curves
* Rising interest rates
* Soaring home values and home prices and home sales
* A 1% overall recovery – across the world – some hot spots not many
* Driving the frenzy is hope and promise and speculative investing
* The Fed is going to stop spending – start selling – and raise prices of interest and raise market rates by selling its assets.
* This will take the dollar higher when to recover in trade the US needs the dollar lower.
* This Fed move can by itself generate a market recession effect.
* No one can predict outcome of the SUPER BUBBLES being created by prolonged free money policies over ten years.
* As free money comes to a close SUPER BUBBLES tend to BURST and that creates panic and recession effects in markets.
We look at these details and rub our glasses and say like in the fairy tale – Mirror Mirror on the walls when it comes to stocks DID YOU BUY THEM ALL?
Berny Dohrmann – Out of the Market and staying out till the SHIFT— April 25, 2017