Authored by Lance Roberts via RealInvestmentAdvice.com,
As the stock market hits all-time highs in its 2nd longest bull market run in history, the lift of asset prices has surely lifted the economic prosperity of all. Right?
Not really.
New reports from the Hamilton Project and The Federal Reserve show the real problems facing Americans today.
Following modest drops in UK and EU PMIs (and a mixed picture in China), Markit's US Manufacturing PMI inched higher in September amid schizophrenic collapse in output growth (14mo lows) and surge in employment (9mo highs). ISM, on the other hand, reported that US Manufacturing has not been this awesome since June 2004.
Prices Paid are soaring helping Make Manufacturing in America Great Again
As New Orders jump (but remain well below early 2017 highs...
The surge in prices paid and deliveries stand out...
It appears the crucial link between HFT algos and the options market just broke as BATS options exchanges have declared self-help again NASDAQ ISE. VIX is spiking as stocks open, but stocks limping very modestly lower.
Certainly some odd behavior around the open.
Central Banks have FINALLY created inflation.
Starting in late 2016, Central Banks began actively rigging the stock market via a number of gimmicks.
They are:
1) Slamming the VIX lower to force risk-parity funds to buy stocks.
2) Selling the Japanese Yen and buying $USD to force stocks higher via the Yen carry trade.
3) Outright buying stocks and ETFs directly.
All three of these strategies involve a Central Bank actively printing money and funneling directly into the financial markets.
And THAT is a game-changer.
Crude Oil has been moving sharply higher the past few weeks. Last week we shared with Sectors Extreme & Premium members that Crude Oil had created an important pattern to finish the week while hitting an important price point.
Below looks at the chart shared with members last Friday-