Sound the Seven Trumpets! Summon the Horsemen! The Nasdaq Composite prints above 9K for the first time in history on 12/27/19. COMPQ prints an all-time high at 9022.46 and an all-time closing high at 9022.39.
Traders and investors are tripping over each other buying tech stocks with reckless abandon. Aunt Harriet invested her entire life savings in semiconductors last week and is smiling from ear to ear. She gathered money from all the blue-haired women at the Ladies Guild meeting this morning and bot FB stock. The ladies are already tipsy into the weekend drinking Fed wine and celebrating their belief that they will be super wealthy come summertime. Harriet is a local hero and now called an investment guru.
Tech stocks are hot. The Nazzy Comp prints the longest daily winning streak in a decade up for 11 straight days; today would be a dozen. COMPQ was up 70 points yesterday, +0.8%, to the 9022 record highs. Apple prints a new record high. AAPL gains +2% to 289.91 with an all-time high at 289.98 only 10 bucks from 3 hundo. AMZN catapults +4.5% higher yesterday to 1869.
The monthly chart drives higher with only three trading days remaining in December. A new candlestick will begin for January. The indicators clearly remain in negative divergence calling for a multi-year top, however, the panic by the Fed and other global central bankers last January led to massive Keynesian money-printing. The world is awash in liquidity that has sent stocks to the moon. The Fed hit the afterburners in September pumping huge liquidity into the financial system to prevent a credit event by year-end, now only days away. The rising wedge pattern is bearish. The stoch's are overbot.
Comically, the Fed is pumping over $100 billion into the financial markets, per month, which is an even greater rate than the $80 billion per month during prior QE periods (although the Fed says it is not QE). Pause for laughter. What a joke of a financial system. Everyone will learn over time.
The central banker largess during the last four months, over and above the global central banker accommodation all year long, creates that near-term momo you see in the RSI and MACD line. This could creates some additional buoyancy going forward for a month or two but the price move, although parabolic and historic, is not supported by the chart indicators and parameters.
The upper band is violated so the middle band at 7813 and lower band at 6765 are on the table. Price is extended above its moving average ribbon requiring a mean reversion. The purple boxes show that the trend higher in price in 2014 and into the May 2015 top was strong and then the rally in 2018 was a strong trend, however, interestingly, considering the parabolic price move higher now, the ADX is not impressed and says the move higher in the Nazzy is NOT a strong trend. The Aroon green line is at one hundo with nowhere to go but down which is bearish.
The May 2015 stock market top was the real deal. Everything since is fantasy land. The Fed saved the day in early 2016 creating the Tweezer Bottom. The Fed goosed again in early 2018. Keep in mind that over 20 other global central banks are creating easy money at the same time over these many years. The Fed saves the day again this year when they panicked after the 1/3/19 price action. The stock market was dropping like a rock and threatening to take out the Christmas Eve 2018 low. This would have triggered sell programs and create a possible crash. The Fed panicked and in collusion with the other central bankers, BOJ, ECB, PBOC, etc..., engineered a massive historic rally this year. The wealthy elite class dance with glee. They light expensive cigars and dab the ashes on the foreheads of the stupid huddled masses.
Volume keeps trailing off each month and has not been able to overtake the volume from spring and summertime. Price will want to retrace to these levels to see what the story is. The party is in full swing. Traders are drunk as skunks on Fed wine, dancing inside an echo chamber, with everyone telling each other that the good times will continue forever.
The Fed is likely disturbed by the end of year stock market thrust. The Federal Reserve is trying to prevent a credit event from crashing markets so they are printing money like madmen which only makes the wealthy more filthy rich. The stock market has gone parabolic. Isn't crony capitalism fun? Well, at least until it morphs into socialism-light as a new form of US government in a decade or two.
Despite the record highs, a multi-year top remains on tap, say now through April, depending on how far this momo push can extend price. The Fed needed to provide liquidity through EOY so once that hurdle is overcome, everyone will look at Powell for guidance. In the late 90's,the Fed provided so-called temporary accomodation but when they took the easy money booze away, the markets fell. Chairman Powell is looking at travel brochures wishing he was laying on the beach of an exotic island instead of dealing with major financial matters and policies that may bring down the entire faux free market crony capitalism system in America. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 9:50 AM EST: The bullish fun continues. The Nazzy Comp prints a new all-time record high at 9052.00 on the dot. The bulls appear unstoppable.
Note Added 10:02 AM EST: Whoopsies daisies. The Nazzy falls on its sword after the historic high is printed. COMPQ is now red on the day down -0.2% at 9002 losing 50 handles off the high.
Note Added 10:06 AM EST: The COMPQ is at the 8998 palindrome.
Note Added 10:13 AM EST: The COMPQ is at the 9009 palindrome.
Note Added 11:42 AM EST: The COMPQ recovers 10 points to 9032 but remains 20 handles below the all-time high at 9052 that printed a couple hours ago. The VIX popped above 13 this morning now at 12.98.
Note Added Sunday, 12/29/19, at 9:37 AM EST: The bulls finish last week with more joyous all-time record highs although prices deflated as the day played out. The record-setting Nazzy winning streak ends at 11 days. The COMPQ loses 16 points, -0.2%, to 9007. The Nazzy Comp prints a new all-time high at 9052.00. The Nazzy 100, NDX, also prints a new all-time high at 8811.10. AAPL, GOOGL, INTC and MSFT all print record highs. No doubt tech leads the way. This is due to young folks, that work in computer-related industries, making a good buck, buying the tech stocks. To many young people, tech and computers are their religion. It will be comical to watch them all scurry around like ants over the next couple years as the central bankers are exposed for their nefarious ways and stocks experience a drastic repricing. Stocks keep going up as long as a fool keeps buying what another fool is selling. When a fool cannot sell their stock, since there is no longer a bigger fool around, he or she realizes that they truly are the final fool holding the bag.
Note Added Tuesday Morning, 12/31/19, at 7:42 AM EST: US stocks are lower on Monday. COMPQ loses -0.666% to 8946. LOD 8909.
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