Shifting the narrative
For most of the past eight weeks, the financial media have been attempting to tilt the scales of conversation away from the weak macro backdrop in favor of the new initiative on Afghanistan and/or the Trump White House and/or domestic and international terror. As stocks rally in the face of flat earnings growth and rising P/Es, I have noticed an unwavering tendency for dips to be bought firstly by the preprogrammed computer programs, then by traders, and finally by the investing public who continue to behave as instructed by the Behavioral Architects that reside within the Working Group on Capital Markets and execute through the NY Federal Reserve. Similarly, gold now above $1,300 and silver above $17.10 have in the past been faded like old swimsuits as all eyes are glued to the rising open interest and bullion bank aggregate short positions that are historical precursors for criminal takedowns.
As we head into the final week of August with the kiddies all headed back to school, I wonder whether or not the world of stock trading has finally assumed the role of an RPG not unlike Final Fantasy or Grand Theft Auto.