Raging Bull

Hey guys! Let's get right into it today. So yesterday the bulls successfully broke through 9 year resistance (well done to the bulls), and as we kick-off the final month of trade in what has turned out to be a year for the history books, the bulls will be looking to take full advantage of the (obvious) death of price discovery, and the bear (RIP). The current Put-to-Call ratio proves bears are extinct, with the lowest print I've ever seen my career (0.34 today). By contrast, the next lowest print was in Oct 2007, when we saw 0.42. Seemingly everyone, (except me) has been squeezed out of their shorts, and hedges. Those still holding cash are slowly but surely watching their purchasing power diminish, with the nuclear levels of fiat debasement we're witnessing on a daily basis. Bitcoin and Gold alike show the inflation carnage quite well, as they hover near all-time highs once again.

The US majors were up an astonishing 10 - 12% in November alone, (this used to be a solid annual return), and all that off the back of hope, according to the financial media. It's becoming clear that in a market relentlessly beaten beyond recognition, that only the FED and hope matter. Personally, I'm focusing on increasing my income, continuing to utilize excess cash on hand for hedging purposes, and shorting overvalued indexes such as the Nasdaq. I simply refuse to eat the sh*t they keep trying to feed us each day, and if I have to sit on the sidelines until we see proper functioning markets and price discovery again, that's a better solution imo.

ISM Manufacturing came in weaker than expected this morning at 57.5% vs 58% exp. Construction spending rose slightly with a print of 1.3% vs expectations of 0.7%. The 10Y yield is still hovering around 0.9%, with the recent breakout smothered by (timely) demand. The Vix continues to get hammered, and we saw a sub 20's print on Friday, for the first time since mid February. Well done to the FED. The message to investors is clear: Don't you dare attempt to manage risk by shorting or hedging. Just sleep...

Thanks for your time today guys. If you enjoyed today's analysis, please hit the Like button and subscribe to our profile. The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research. Cheers, Michael.