Thursday, September 3, 2020

85% off the top

An equity crash so vicious and destructive, almost no one catches it.  With only one solid buyable dip (on the September FOMC), wave after wave of Fed sycophants and buy-side grifters are ripped to pieces and then eaten.  



Over in 9 weeks when the Fed announces a formal policy of buying ETFs like $SPY and $QQQ to support equity valuations and keep the deflation monster from devouring the world.


S&P 500 daily


8 comments:

christiangustafson said...

LLD on the /ES is around the 3290 level tonight. Good luck.

Bryan Franco said...

VEEV, OKTA, COUP, ZS, MDB, RNG, SPLK, BILL, ZM, DOCU... and there are hundreds more, and they are not trivial weights, they are between $5-$500B market cap companies, and they are trading at between 30x - 3000x FY2 eps and 10x - 100x sales. And relative to their growth rates, things like Apple are even more overvalued. 85% is a rational decline. But will the Fed allow it?

christiangustafson said...

The Fed will act in September. Bounce. The Fed cannot act in October because Election. The Fed meets again during Election week.

Kevin said...

Christian, I think you're 9 weeks timing is off, and a bit rash. My work says "9 and a 1/2" weeks. Maybe they'll make a movie of it. If so, gonna be intense!

christiangustafson said...

Let's see how hot it gets today. 3216 would be the surprise Bear move.

Randall Beehomes said...

Dingleberry shows up and the top happens. Like clockwork.

"It was an abortion Michael."

christiangustafson said...

The dive at the open was an irregular b of 2 wave. W2 finished before the close and there will be big red candles next week.

christiangustafson said...

W1 and W2 are about equal on time. W2 basically retraced itself, didn't eat much of W1's decline. All the longs are frozen in their positions, Schwab etc are all soothing their nerves that they should be in for the long haul.

The tech rally was exposed as a complete sham by the likes of SoftBank. Good luck with all of that.