The Entire World Is "Overbought"

Tyler Durden's picture

After an initial delay, global stock markets have joined the Trump-flation euphoria in recent weeks. In fact, despite the dismal decline in global earnings, global stocks are now within inches of April 2015's record highs, and are now the most overbought since July 2014.

Everything is awsome in the world again...

When global stocks reached this level previously, they plunged over 20% in the next 6 months.

When global stocks were this overbought in 2014, they plunged over 10% in 5 weeks.

Oh, just one more thing...

Trade accordingly.

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hedgeless_horseman's picture

 

Trade accordingly.

So, bet on an earnings rally?

evoila's picture

Uncertainty must be good. immigration, taxes, healthcare, national security.

 

BUY BUY BUY

NEOSERF's picture

When I see the SNB buying Billions of US stocks outright with no intent to sell, this says to me, others will jump on the boat (like the EU or Japan shortly after they run out of EU stocks, the will start buying ADRs which will allow them more time), and the CBs are smart enough to focus on index stocks not from a risk perspective but from a 'if it never goes down then I don't need to show losses" perspective.  This new era of the game can go on for years and if the US jumps in with SS money to invest or similar, then another 15 years and Dow 50,000 is not out of the question.

evoila's picture

LOL. Good one. Seems like more and more people on ZH are drinking the kool-aid.

mtl4's picture

This shizzle is just getting started really, most retail money sitting on the sidelines and most firms aren't fully invested either plus interest rates are still extremely low.........this all before the Euro has blown itself up too.  PMs will slowly grind upwards but stocks will be absolutely rediculous before this whole nonesense rolls over again.

LawsofPhysics's picture

Look at the central bank balance sheets for fuck's sake. All stimulus is indeed "fungible", global Weimar is coming.

we will all be trillionaires...

TheRideNeverEnds's picture

Lol 15 years.

The DOW will past 50k within the next five. It's gonna be in the six fixtures fifteen years hence.

Rainman's picture

such a rally will require significantly moar hopium.

Gazooks's picture

this is the end..

 

 

..beautiful friend, the end

GUS100CORRINA's picture

America and the World are in very dangerous uncharted territory.

To get the truth of the matter of markets, debt and finance, visit this website. Be prepared for SHOCK and AWE in case you have never seen it.

http://money.visualcapitalist.com/

 

Traderone's picture

I am not American or 'of this world', is it ok if I watch it?

BlueHorseShoeLovesDT's picture

Of course

 

Schlepmorons were going crazy on you last night

Traderone's picture

Really? I thought those Dimwits had scarpered but obviously not. 

BlueHorseShoeLovesDT's picture

New promotional price they were all over the wrap late 

Snaffew's picture

earnings season is over...they have priced in years of stellar earnings in just a few weeks.  The geo-political and Trump tweets will rule the market movements for the next couple months.  In any regards--BTFD...too bad there is never a dip.

r3phl0x's picture

Soon a -0.08% day will be a historic correction.

Hammer823's picture

Stocks will rise over time because the absolutely have to.  It's not optional.

$25 Trillion in Retirement Assets.  Every Pension, 401K, and IRA 100% DEPENDANT on an ever increasing market.

$2 Trillion in Baby Boomer defferred taxes on their 410k's all coming due in next 10 years.

$300 Billion in Federal Capital Gains taxes collected just last year.  Thats' 10% of TOTAL Federel Revenue DEPENDANT on stocks.

There is no choice but to rig the market higher. 

Make money off of the corruption with me.

https://www.instagram.com/the_rigged_street_journal/?hl=en

 

 

 

LawsofPhysics's picture

LOL!!!!  How did that work out for Japan?

edifice's picture

Sell, Mortimer!

SomethingSomethingDarkSide's picture

New Regime is Carry Trading Algos and the Central Bankers that bait them this way or that.

NoDebt's picture

I used to worry about things like EPS, free cashflow, leverage ratios, etc.  But I decided I'm really more of a "big picture" kinda guy.  So now I just buy the dip like everyone else and don't pay much attention to the details.

 

BigFatUglyBubble's picture

Poor muppets, they don't know about the dip?

Chipped ham's picture

Bullish until it ain't. 

BlueHorseShoeLovesDT's picture

Trump knows what he is doing, stawks are going higher at a record clip.

Bill of Rights's picture

Since your convinced you could do a better job...do it. Or would you rather sit here lip flapping your gums.

BlueHorseShoeLovesDT's picture

You really don't pay attention to what Trump says, do you?

jamesmmu's picture

DOW was top at around 14,200 at the end of 2007, the major top. Now Dow is 20,400, did you see something similar? Both situation that investors thought Fed or Trump will fix everything, but nothing happened or turn around. 6 month later, stocks imploded.

 

This is the bear market rally.

jamesmmu's picture

And both cases, economy are heading down, but sentiment keep going up. and market keep making new highs due to bullish sentiment. When they woke up to their leverages, market will crash.

BandGap's picture

So who is going to sell?

Hmmm?

No one.

UmbilicalMosqueSweeper's picture

I own one square-inch on the moon (and a baking soda submarine). Got the deed and the sub in cereal boxes 60 years ago. Any snowflakes need a safe space in space, or beneath the waves in your bathtub?

Bill of Rights's picture

Should be interesting to see how these assholes game the books....

LawsofPhysics's picture

How you ask?

"Fuck you, pay me."

same as it ever was until we take their motherfucking heads!

LawsofPhysics's picture

"The entire world is overstimulated" - fixed it for you.

 

Yes, global Weimar is inevitable now.

Rebel yell's picture

The entire world is over-simulated. The global Weimar in inevitable now.
Fixed it for you.

Insurrector's picture

Did you read the NY Times opinion piece by of May 31, 2016 called Is This the West’s Weimar Moment?

You can find it online at https://www.nytimes.com/2016/05/31/opinion/is-this-the-wests-weimar-mome...

Here is an excerpt:

In America and Europe, the rise of anti-establishment movements is a symptom of a cultural shock against globalized postmodernity, similar to the 1930s’ rejection of modernity. The common accusation by the “masses” is that liberal democracy has somehow gone too far, that it has become an ideology for an elite at the expense of everyone else. Marine Le Pen, chief of the French National Front, calls these normal folk “les invisibles et les oubliés,” the invisible and the forgotten.

 

 


Rebel yell's picture

I think that it is a rejection of hypocrisy, plutocracy, corporatocracy, and propaganda. That was what Hillary Clinton represented. She was not liberal and neither was Obama. They spoke that way, but all of their policies were far from liberal. People have also rejected modern neo-conservatism. We have rejected the self-serving establishment all together. I voted for Bernie in the primary and voted for Trump. I have been politically active throughout my adult life. I think that I would have killed myself if Hillary won because rewarding an evil, war-mongering criminal, and cheater like that is a country that I have no desire to live in.

Occams_Razor_Trader's picture

I take unberance to the term "Neo- conservative" as the left has adopted and embraced it- so let's call it "Neo- progressive".

Bernie Madolf's picture

shorting this turd.

Bought sept vxx $14 calls @ $4.75

Too much complacency. Don't follow me unless u have balls of steel. Prefer to short vxx due to rolling structure but vol is just too low

BlueHorseShoeLovesDT's picture

Spread those off

 

the decay will kill you, on both the underlying and your option

nsurf9's picture

Take a look at UVXY and TVIX - they both look like someone pulled the plug from the bottom of their respective lakes.

Racer's picture

Reminds me very much of dot.com and tulipmania

Occams_Razor_Trader's picture

With more fiat then anyone could imagine.

Occams_Razor_Trader's picture

And the rest of the headline?

 

................................... And Can Stay That Way For A Long Time!!

(that's what a bull market is fueled by - overbuying!)

Occams_Razor_Trader's picture

And what part of "Make America Great Again" did you miss?

JailBanksters's picture

I have to admit, I have overbought

I bought a couple of tins of Kidney Bears, I didn't really need them at the time.

I just bought them in case I wanted to use them one day in the future.