Black Monday

[Entrep]

reeeeeeeeekt https://www.zerohedge.com/markets/ic...st-ever-losses

[Joshuatree]

Redpill huh hahahha a cunning wave wallet that resides/hides in your stomach away from regulators, brilliant.And it manipulates your emotions because thats where they are in your stomach. Just swallow one harmless looking red pill

[peat]

Twiggs describes the current situation .... (my bolding)

"Let's look at where the money is coming from.
Treasury debt has expanded by more than $3 trillion in the last four months (March 9 - July 9) as the government does everything in its power to cushion the economy from an unprecedented shutdown. Rescuing airlines, bailing out Boeing, emergency business loans, job preservation schemes, and supporting Fed purchases of a wide variety of financial assets to keep the plumbing of financial markets open. Every way they can, government has been flooding the market with money and some of that has found its way to the stock market. Whether through boosting stock purchases, enabling companies to raise debt or boosting consumer spending to buoy up sales, the market is flying on borrowed money.
Steep up-trends like this typically end in a blow-off. A trend is self-reinforcing if rising prices attract more investors who in turn bid up prices even further. A steady influx of new investors is required to sustain the trend, else it dies.
Similar self-reinforcing cycles are evident in nature, where they expand violently outward at an exponential rate until they run out of fuel. The fuel driving the event may differ, from dry tinder in a forest fire, warm ocean temperatures in a hurricane, consumable vegetation in a locust plague, .....or exposed population in a virus outbreak. The cycle expands, feeding on itself, until the fuel is exhausted.
A stock market blow-off is no different. The up-trend will continue for as long as rising prices are able to attract new investors. It will stop when the source of new money dries up. In this case, when Treasury tries to slow the unsustainable growth in federal debt. Then it becomes a case of devil-take-the-hindmost as a preponderance of sellers attempt to offload their stocks on a rapidly shrinking pool of buyers."

[Balance]

https://www.marketwatch.com/story/th...eak-2020-07-12

Reasons why stock markets are so strong when economies are so weak.

[moka]

Twiggs describes the current situation .... (my bolding)

The fuel driving the event may differ, from dry tinder in a forest fire, warm ocean temperatures in a hurricane, consumable vegetation in a locust plague, .....or exposed population in a virus outbreak. The cycle expands, feeding on itself, until the fuel is exhausted.
A stock market blow-off is no different. The up-trend will continue for as long as rising prices are able to attract new investors. It will stop when the source of new money dries up. In this case, when Treasury tries to slow the unsustainable growth in federal debt. Then it becomes a case of devil-take-the-hindmost as a preponderance of sellers attempt to offload their stocks on a rapidly shrinking pool of buyers."

The stock market is in a state of dependency - corporate welfare dependency. As soon as the Fed talks about taking away the stimulus the market drops. They need their fix, they are addicted to it, and think they cannot survive without it. Addiction is a brain disorder characterized by compulsive engagement in rewarding stimuli despite adverse consequences.
The Fed has not been able to stop feeding the share market their fix since GFC.

[blackcap]

https://www.marketwatch.com/story/th...eak-2020-07-12

Reasons why stock markets are so strong when economies are so weak.

Especially with low interest rates these long term cash flow valuations will hold up extremely well.

[ynot]

The stock market is in a state of dependency - corporate welfare dependency. As soon as the Fed talks about taking away the stimulus the market drops. They need their fix, they are addicted to it, and think they cannot survive without it. Addiction is a brain disorder characterized by compulsive engagement in rewarding stimuli despite adverse consequences.
The Fed has not been able to stop feeding the share market their fix since GFC.

The standout for me at the moment is gold/silver making quite the statement regardless of the feds best efforts to hold up this circus act.

[moka]

Where are the jobs going to come from, with the biggest technology companies employing relatively few people? With consumer spending being about 60% of the economy there needs to be well-paying jobs, a strong middle class to support the economy. It is another way in which the sharemarket is divorced from the real economy.

https://www.newsroom.co.nz/rod-orams-june-26-column
In the S&P 500 for example, five stocks account for 20 percent of the index’s market capitalisation – with the other 495 accounting for the other 80 percent. The five – Amazon, Alphabet (parent company of Google), Apple, Facebook and Microsoft – have out-performed the market while helping to drive it up.
But four of those companies have surprisingly few employees. For example, Apple’s staff worldwide numbers only 137,000 and Microsoft’s 151,000. Yet, both have market capitalisations greater than US$1.5 tr. By comparison, back in the early 1960s when stock markets reflected the real economy, AT&T and General Motors employed nearly 1.2 million people combined.

[bull....]

US earnsing season starts of well

Citigroup on Tuesday reported second-quarter results that surpassed analyst expectations thanks in part to a massive surge in trading revenue that helped offset a slowdown in the company’s consumer banking business

https://www.cnbc.com/2020/07/14/citi...-earnings.html


Despite a massive recession, JPMorgan Chase just posted record revenue — here’s how the bank did it



https://www.cnbc.com/2020/07/14/desp...ey-did-it.html


who said you cant make massive profits trading

[Balance]

More money created out of thin air on the way - lots and lots of it.

2:07 p.m. ET: Fed’s Brainard calls for monetary policy to shift ‘from stabilization to accommodation’ as pandemic progresses

Federal Reserve Governor Lael Brainard said Tuesday that the central bank should begin to pivot to offering an accommodative policy framework as a fresh rise in coronavirus cases threatens the speed of the US economic recovery.