NQ has been well supported on narrowing breadth.
Q3 EPS will be poor, Guidance will be poor for the
majority of the TECH Complex.
The FED, Wall Street and it's Macrocosm of Capital
is clearly positioning for this ahead of Q4 2021.
We see this in Bond accumulation, we see this in
the Reverse Repurchase Facilities and as well at the
US Treasury. They are Draining Net Liquidity through
various mechanisms - while the Investing Herd is
chasing Price.
Although the Federal Reserve has repeatedly warned
of excess Valuations in Equities - Margin Debt continues
to expand after contracting in June/July to all time
record Highs.
It is now surpassing the levels of Leverage prior to the
1929 Collapse.
The Big Chase is on... where it ends... we can only attempt
to project based on Longer Term Trends.
When in Doubt "Zoom Out".
The Nasdaq has been the Best performing Instrument for
two decades, period.
Why work when the FED has you covered. Buy the Dip has
taken on a level of assurance unseen in Human History.
It is misplaced.
Those making these arrangements will continue to do so
and should there be a large pothole in the road... they
will simply 10X their efforts.
This too will fail in time, but not before an even greater
effort to maintain their Game.
Lowered EPS will be arriving shortly as many entities
dependent upon China's consumption are seeing the
closure of their Economy to Non-Sovereign business
entities - constrained.
From Starbucks to Tesla to MicroSoft, sales are on the
decline and have been since early 2021.
A flash survey of 169 member companies from Feb. 17 to 20
found that nearly half expect their China revenues this year
to decrease if business cannot return to normal before April 30.
And decline they did as the CCP undertook draconian measures
to reduce foreign competition to protect and shift demand
inward.
The results of the CCP's planned contraction(s) for Foreign
Enterprise has largely been ignored by US Equity Markets.
The A50 has seen a 28% correction from its Highs.
Asia and the US Markets have never been this Divergent.
Q3 EPS will be poor, Guidance will be poor for the
majority of the TECH Complex.
The FED, Wall Street and it's Macrocosm of Capital
is clearly positioning for this ahead of Q4 2021.
We see this in Bond accumulation, we see this in
the Reverse Repurchase Facilities and as well at the
US Treasury. They are Draining Net Liquidity through
various mechanisms - while the Investing Herd is
chasing Price.
Although the Federal Reserve has repeatedly warned
of excess Valuations in Equities - Margin Debt continues
to expand after contracting in June/July to all time
record Highs.
It is now surpassing the levels of Leverage prior to the
1929 Collapse.
The Big Chase is on... where it ends... we can only attempt
to project based on Longer Term Trends.
When in Doubt "Zoom Out".
The Nasdaq has been the Best performing Instrument for
two decades, period.
Why work when the FED has you covered. Buy the Dip has
taken on a level of assurance unseen in Human History.
It is misplaced.
Those making these arrangements will continue to do so
and should there be a large pothole in the road... they
will simply 10X their efforts.
This too will fail in time, but not before an even greater
effort to maintain their Game.
Lowered EPS will be arriving shortly as many entities
dependent upon China's consumption are seeing the
closure of their Economy to Non-Sovereign business
entities - constrained.
From Starbucks to Tesla to MicroSoft, sales are on the
decline and have been since early 2021.
A flash survey of 169 member companies from Feb. 17 to 20
found that nearly half expect their China revenues this year
to decrease if business cannot return to normal before April 30.
And decline they did as the CCP undertook draconian measures
to reduce foreign competition to protect and shift demand
inward.
The results of the CCP's planned contraction(s) for Foreign
Enterprise has largely been ignored by US Equity Markets.
The A50 has seen a 28% correction from its Highs.
Asia and the US Markets have never been this Divergent.