Rosenberg Presents The Wile E. Coyote Market In 18 Easy Charts

Tyler Durden's picture

David Rosenberg, who appears to have almost jumped the xtranormal bandwagon, and now realizes that the most effective way of communicating with the several 20 year old ADHD-addled speculators who still trade the market is in cartoon or chart form, continues on his one picture is worth a thousand words theme from yesterday. Today, he generously spares readers the trouble of reading 18,000 give or take words, and instead present 18 charts about the economy that paint a somewhat less rosy picture of what is going on out there, the bulk of which continues to be a government stimulus-funded, steroid liquidity driven sugar high, which has no choice but to keep getting ever more in stimulus and liquidity, or else everything collapses. And that in the meantime food riots are spreading from Africa to India (more on that shortly), should not worry anyone at all. After all the Chairman said he is 100% confident he can stem inflation before it results in such riots as we already reported on two occasions in 2011 alone (here and here).


And so without further ado, here are the charts that refuse to lend a silver lining to the Wile Coyote market:

While Bob Farrell’s rule number nine warns us to be wary of widespread consensus opinions, it may well turn out that all the bullish Wall Street analysts end up being correct that 2011 proves to be another wonderful year. But the one thing we can assure you, as was the case in 2010, is that it will not be a straight line up. In fact, we would argue that there are more headwinds, potholes, and event risks this year than there were last year. Enjoy the picture show.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Rusty Shorts's picture

ghostable interface crasher controller chip

Armchair Bear's picture


Damn...update from Markets entity...

Too many immediacy values with too high sums in the impact, duration, and tension levels to ignore so had to stop work to extract and post the update below. Rest of the report better not be like this or it will take forever....

Extract from upcoming Shape Report: Markets entity:

As 2010 fades rapidly from sight, and mind, we note that the Markets entity is pretty much as its primary supporting descriptors would have it, a [basket (of) crises]. The [basket-case markets] set has secondary support coming from [interwoven] and [inextricably twined] which are themselves both supported at their primary levels by [bad foods] which, given its supporting sets, we are interpreting as [indigestible products]. These [indigestible (financial) products] are about to make [minions (within markets)] go into [spasms] of [violent puking]. This is indicated to be a [planet wide] level event, that in its turn brings [international grievances] and [inter country tensions] to a [visible] and [frightening] level that will be described (in the msm propaganda press) as being a [boil over] situation. The interpretation that we have about the [indigestible products] is that they fall into the category of [derivatives] in general, but specifically there are linguistics around the idea of a [gold price tied/bound] form of [derivative] that [fails] in an [instant] due to a [crisis] in the [gold/precious metals market]. This forecast is based on a lot of immediacy data value sets and so may be within days of happening, and likely will be occurring by the time that this Shape report is published.



January 11, 2011

66Sexy's picture

fundamentals? are you kidding?


buy the fucking dips.

Rusty Shorts's picture

Speaking of food production, how much does Queensland Australia contribute?

Armchair Bear's picture


Oy! Mate! Look over there....!

We do not usually do this sort of thing, and i sincerely hope that this is a total waste of my time, and further that i do not waste precious time of any of the humans involved, however, i am in the initial stages of the interpretation of the data for this next report, and had been asked by a reader about the current floods in Australia, so it seemed worth the effort to examine the immediacy data sets this morning. These are effective from 3/three days out to 3/three weeks (more or less), and as a rule contain some of the higher level emotional linguistics to be found, which are frequently the most freakishly accurate.

NOT THAT THIS IS THE CASE in this instance as we have no way of judging the accuracy until after the forecast time has past...

BUT, given the above as a disclaimer, and with the idea that we understand so little (really) about future forecasting, especially in the extremely close range, nonetheless, the data sets prompted me to post this warning.

Our data sets over the past year have had lots of instance of descriptors for the kinds of flooding activity that is now overwhelming the humans and animals and plants in Australia. The damage has already reached serious and impacting levels. The nasty part of the forecasts from both 2009, and 2010 relative to [floods in places that NEVER flood], is that we had also seen references within those same data sets for [dams failing]...and also curiously, for a [dam saved]. This last set included specifics going to [at the last minute], and [through (close/detailed) attention].

While looking through the most recent immediacy data, i came across several [dam] references that *could be* forecasting future happenings within the chaos of the Australian floods. Noting that our geographic references are right down there in the in-accuracy levels of numbers and are usually discarded as untrustworthy, and further noting that there are several regions of the planet that are experiencing [freakish flooding] at the moment, i still feel compelled to state that the current data sets have a set going to a [dam (nearly) collapses], and a set that is a [dam 'scooting' off its base].

The [dam (nearly) collapses] set may be pointing to the same set as the [dam scooting off its base]. This cannot be determined from this point in time.

Without regard to one or more dams, the data shows in the detail sets that the [dam scooting off its base] is [discovered (prior to the movement)] by [sharp eyes]. So i figured to help out with what descriptors we have available at this point. These details include the [right side] of the dam when facing it from below, and that set also is internally cross linked to [bubbling up]. Within the [bubbling up] set are supporting linguistics for [trees (specifically fruit trees though that can also mean trees of a commercial nature)] that are [snapped/damaged]. These [trees] are either the [cause] of the [bubbling up] due to [root penetration under the dam] or are [pointers to the place of the bubbling up], again, we cannot tell from the data set due to the ambiguity of language. In our referential integrity checks on the data, the timing clues suggest that as of this point of time (early morning, on January 11, 2011 here in Pacific time zone, north america), the [bubbling up], that is the sign of or a contributing factor to the [dam scooting off its base], is in the [initial stages]. Further descriptors include a curious group going to the idea that the [water (bubbling under) the dam] will [become as fog (obscuring)]. Further details include sets for [yielding] and [solid (structure) on weakened base].

Again we note that [trees] are a central theme to the descriptors in support of the [bubbling] that is even now preceding the [scooting off the base].

When viewing the structure of the detail layers, it would appear that the [dam], while [stressed] at this point is to be further tested by [yet more torrential rains], as well as [(another?) ascending wall of waters]. So apparently the [bubbling up] would be [deemed acceptable] at this moment, but will [in hindsight/past viewing] be [labeled] as the [cause for failure] after the [impact] of the [next round] of [rains].

Sorry to say that the data suggests yet more [torrents] will be forth coming.

So, we put this out to universe in an attempt to be useful humans. Hopefully we are just batshit screwy and totally wrong, but if not...oy, Mate! Look over that puddle of water, in the midst of all those other puddles of water, as this one is [obscuring the danger].

Good luck to all humans and other terra critters of all species. We are all going to need it.



January 11, 2011

MayIMommaDogFace2theBananaPatch's picture

Another graduate of the Jared Loughner (Correspondence) College of High-Finance and Logic.

RockyRacoon's picture

Sorry, mate.  I'm [having some] difficulty ** following your [logic], if that is what itsss's clalleddd, eh?

Armchair Bear's picture

web bot stuff

take it (or not) at your own risk..


"you're welcome"!!

Armchair Bear's picture

I guess we can all re-read it in a week or so and see what transpired - right - I'm just putting it out here for people to see...

LeftCoastRefugee's picture

And up up and away go the equity markets.

Liars Poker's picture

Atleast the general public won't get depressed about this, considering their only information comes from the back of a beer can and espn. :)

Boilermaker's picture

Huh?  DOW is up almost a HUNDO and SPX is 10+ handles...

This must be a mistake...

Gubbmint Cheese's picture

one thing to remember about Wile E. Coyote - he doesn't start to fall until after he looks down. Thus far in this market.. no one is looking down.

RobotTrader's picture

Wile Coyote?

So far, I'm not seeing it.  I thought we had a chance the other day with the XRT breaking down, but no cigars yet.

Boilermaker's picture

Can someone put up a 12 month chart of how many worthless charts Robo has posted? 

Now THAT would be an upward trend.

Prof Gulliver's picture

Robo's charts haven't been worthless; Rosie's moronic predictions have been. The only ones falling off a cliff are those who followed the advice of this self-promoting blowhard.

No Mas's picture

Better yet, let's put up all of Rosie's predictions and laugh at the gross failure of this man to call anything close to correct.

The guy has been saying the sky is falling forever, and now another article about the end of the world.

Let's check the market.  Hmmmm... let's see, DOW +100 S&P +11 NASDAQ +18.

Yeah, let's pay attention to what this guy has to say about equities.

BM, are you really such a fool?  How many times does reality have to kick in your teeth before you realize you can only eat soup.

Still waiting for that "margin compression" you guys have preached about to impact earnings.  Maybe next time, huh?

Still waiting for that $10 loaf of bread Tyler crowed about on 11/4/10 but still, no joy.

Still waiting for Greece, Portugal, et. al. to collapse into anarchy.  Still waiting.

Here's what's going to happen.  Earnings will soar, market will soar and the likes of you will troll these boards trying to make sure your dear leader is pleased with your indoctrination. 

Another idea BM ( and I use that initialism because it better fits what comes off your keyboard) is to list all of the doomsday scenarios listed on ZH in the last year and see where they stand.

Oh, looky!!! A new crisis - COLLEGE DEBT.  That'll do us in for sure.

God what a bunch of lackys.

MayIMommaDogFace2theBananaPatch's picture

I'll sell you a loaf of bread for $10 if that will make you feel better.  Yeah, I'll bake it myself too.

CrashisOptimistic's picture

I don't think Rosenberg's firm is all that deeply into client US equities positions.  They are Canadian.  They likely put clients into gold mining companies and iron ore producers and other Canadian natural resource firms.

A natural resource firm cares only about consumption of their product -- and most of that is China.

ElvisDog's picture

You may have a heart attack, NoMas, but I'm coming to your defense. So far, you have been right in that the pain many have predicted has not come to pass. That being said, food riots are something that governments can't ignore (ask King Louis XVI). Their willingness to go along with the U.S. policy of exporting inflation will be tested.

Crisismode's picture

"The pain many have predicted has not come to pass."

That would include the 43.2 million Americans on food stamps, and the 17% U6 unemployed, and the 99+ weekers who have dropped off the radar.

But hell, their pain doesn't matter . . . . does it?

entendance's picture

2011 Forex:

<Could the U.S. dollar rise 50%?>

 Yes, it could!

Star Warrior's picture

Anythings Possibe and never say NEVER!

pat53's picture

More meaningless charts form a totally meaningless ANALyst, or whatever the hell they call "Rosie" now. Traders have lost WAY too much money listening to idiots like him, Precther, Mish, Denninger and Farrell. The doom&gloom crowd has once again been proven wrong. I can't believe the people who have been shorting this market for the last 2 years actually keep trying, and losing. Some never learn I guess, until they are completely broke... LOL

plocequ1's picture

Charts mean shit. The 4 POMO dudes run the show. There is only one holy of holy chart.  The POMO chart Tyler posts almost every morning.

Tortfeasor's picture

"proven wrong"?  Howso?  Because the stock market is up?  That's like saying Alex Rodriguez is a better ballplayer this year than last year, because his baseball card increased in value 10%.  Stock values are not a reasonable indicator of societal wealth.


EscapeKey's picture

Yep, unemployment, debt levels, record levels of bankruptcies, collapsing housing markets... these don't matter! All which matters is that some arbitrary numbers on a digital market always are green. That's the only thing you should pay attention to.

Pat53's guide to equity purchases:

When digits are GREEN = BUY.

When digits are RED = BUY EVEN MORE.

Salinger's picture

similar to how the permabull analysts totally missed the housing/credit crisis Rosie/Roubini and their kind have totally missed how the actions of the central banks would impact the equity markets - one of the few guys who continues to get it right is Faber

EscapeKey's picture

Faber says he is 100% sure the US will reach hyperinflation.


Salinger's picture

he also says buy equities here

plocequ1's picture

Wile E Coyote, Super genius. I like the way that rolls out..Wile E Coyote

MayIMommaDogFace2theBananaPatch's picture

Hello.  My name is Mud -- and Mud spelled backwards is DUM.

cbxer55's picture

Wile. E   Allow me to introduce myself, my name is Wile E. Coyote, GENIUS. I'm not selling anything, nor am I working my way through college. So lets get down to cases, you are a rabbit and I am going to eat you for supper. Now don't try to get away, I'm more muscular, more cunning, faster than you are, AND I'm a genius, while you could hardly pass the entrance examination to kindergarten. So I'll give you the customary two minutes to say your prayers.

Bugs  I'm sorry mac, the lady of the house aint home. And besides we mailed you people a check last week.   Door slam.   ;-)

InconvenientCounterParty's picture

The VIX of society.

Unemployment rate of males < the age of 25.

Second derivative is future expectations of males < the age of 25.

Third derivative is the propensity of leadership to provoke this group into action.

stock up on ammo because the army and all the prisons you can shake a stick at won't be able to bend that trend.


HelluvaEngineer's picture

I'm about to go to cash.  VIX to 0.  S&P to 2000 unless some country gets nuked.  That may not even matter.

onlymyopinion's picture

Why cash now?  This bulls not even 2 years old.  I think we see new ATH's on the DOW & SnPs by end of next year (the Rusky is almost there now).    When 95% of the posters on the boards I read turn bullish instead of bearish, I'll know the top is in.  BWDIK, been 95% long since spring 09'.

HelluvaEngineer's picture

So the top is in but we'll see all time highs next year?  OK.

onlymyopinion's picture

No I'm not saying the top is in quite the opposite.  The current bull still has legs which I believe we get to new ATH's on the DOW & Snp's by EOY 2012.  Granted, the train left the station back in March 2009, but there's still a nice little journey ahead from todays levels.  Like I stated, when 95% of the posters are bearish, I'll step aside when they all turn bullish & giddy.  When you start to see giddyness head for the door.  Believe me, I like a lot of other folks got crushed during the internet bubble giddyishness.  IMO we're far from those levels. 

SheepDog-One's picture

Oh ok I see, it all comes down to message board posters. 'When you see giddyness, head for the door'....does almost every financial news anchor and analyst having rainbows and unicorns covered in glitter shooting out of their asses all day every day count as 'giddy' enough for ya?

onlymyopinion's picture

It's just one indicator I use.  Often refer back to the internet bubble days when visions of the Nasdaq surpassing the DOW and buying Dot.coms that would go up 10%-20% a day.  Back then everyone was all giddy and such.  I just have seen no signs of that nowadays.  Don't the sheep always get sheered? I think todays Bears are like the Bulls of the 1999/2000 era. 

Goolie's picture

Long TASeR, the "leadership" is going to stock up to control the torch & pitchfork crowd coming to a neighborhood near you...

wswarrior's picture

I love how the Portuguese bond auction pushed US equities up when we never traded down on European fears to begin with.  It's amazing how the strong Euro weak dollar trade will push US equities up while the dollar strengthening from $1.40 to $1.29 against the Euro in 6 weeks had no negative impact on equities.  This market is shere lunacy.  The DOW hasn't even had a 40 point down day since the end of November.   

HelluvaEngineer's picture

Sure.  It's all been "priced in" about 10 times now.

slow_roast's picture

It's even more remarkable that $1.5B in bond purchases probably added $500B in equity values!  Now that's leverage bitch!