Authored by Satyajit Das', author of the new book "The Age Of Stagnation" (via MarketWatch),
The mispricing of assets across world markets has reached epidemic proportions.
Stock prices have made strong advances over the past several years, yet market analysts see further gains, arguing that the selloffs of August 2015 and early 2016 represent a healthy correction.
Whether this week's market surge was catalyzed by two consecutive "technical problems" in the bond market, first the unexpected failure of the Fed's MBS POMO on Wednesday and then the 7 Year Treasury auction's last minute cancellations yesterday, and quite clearly it was...
... is irrelevant as the short squeeze has not only returned with a vengeance...
... but the critical 1,950 resistance and 50 DMA in the S&P500 was taken out...
Today's OMFG face-ripping, short-squeezing, broken-bond-market-buying ramp was crucial for many chart-watchers.
The S&P 500's close above 1950 (or more accurately, above recent highs and back above the all-important 50-day moving-average) provides hopeful confirmation that the uptrend off the Dimon Bottom will continue (as BofA's Stephen Suttmeier recently noted) following the same 'W' shape recovery seen in Q3/4 2015.
For many, hope is that we extend higher after today's all important break of the 50DMA...
Submitted by Lance Roberts via RealInvestmentAdvice.com,
Earnings Worse Than You Think
Just like the hit series “House Of Cards,” Wall Street earnings season has become rife with manipulation, deceit and obfuscation that could rival the dark corners of Washington, D.C.
Extremely not suitable for work... It just seemed like one of those days...
This was yesterday...
And this is today...