Saturday, June 7, 2014

The Smell of Fear: Believe What You See, Not What You're Told

There are conflicts of interest in every direction now -  a steady blur of buffoons and morons...

The totally bogus "recovery"
There is almost as much b.s. surrounding this chart (below) as there is around the money printed Dow. Bonds are going up, down, all around for "this" reason. 

T-Bonds are following the ever-dwindling economy. That's all. Nothing more. Nothing less. Introducing the 35-year-straight-ploughing-into-the-ground wave. "Real" (deflation-adjusted) interest rates can rise all day, but if the real economy is eroding this red line will continue to fall. 

"What am I going to do, buy bonds? Equities are doing fine. But if interest rates rise, bonds could be hurt badly."

Long-term treasury yields with Fed-printed stocks
During the recession of 2009, bond yields and inflation expectations were higher than they are today. Today, the economy is supposedly five years into "recovery" with eight million more McJobs than existed in 2009, debt has doubled (since '07), the Fed is reducing bond purchases, and yet t-bond yields are still falling as forward deflation expectations continue unabated...


Etraders bidding desperately for Tesla Calls
Equity Put/call ratio


Let's see what they got:
The headless horsemen of Tech:


One Chart to Rule Them All
The Nasdaq HFT Illusion
Nasdaq Comp with % of Stocks above 200 DMA and correlation (bottom pane)


Closing in for the Kill.