While all eyes have been focused on the incessant rise in the price-weighted farce known as The Dow Jones Industrial Average, a funny thing happened in the 'real' market...

The S&P 500 went nowhere... 2474, 2473, 2473, 2470, 2477, 2478, 2475, 2472, 2470, 2476, 2478, 2472, 2477...


How unusual is this? Simple - it's never, ever (in 90 years of S&P history) happened before...


Since The Fed (et al.) began tinkering (red shaded box), markets have slowly (and now quickly) died.

Perhaps even more worrisome, Investors are positioning for more of the same...

There has never been a bigger speculative position tilted towards still-lower volatility...ever!


GUS100CORRINA chosen (not verified) Sat, 08/05/2017 - 20:18 Permalink

Just take a look at the chart below and ask youself a question: HOW IS THIS POSSIBLE IN A FREE MARKET? chart is an example of how to turn $5,000,000 into $30 in under 7 years. Or more importantly, how to short something and never, ever have to buy it back?Brought to you by your friendly neighborhood CENTRAL BANKER!

In reply to by chosen (not verified)

Anteater Rebelrebel7 (not verified) Sat, 08/05/2017 - 20:51 Permalink

I don't get it:Market R/E bubble bursts.Fed steps in to calm roiled markets.Markets calm.Markets rebound faster than all US history.VIX drops to lowest levels of volatility.Markets make tops every single day.Tyler freaks out.This is exactly what the Fed promised!The markets will march relentlessly forward!They no longer have any relationship to earnings.You don't need a brokerage research firm anymore!It's all AI, and it's all automated, and it's all green-over-green.Lock and load, baby! Get those sheckels off the sidelines into play!!WINNING!

In reply to by Rebelrebel7 (not verified)

Bobportlandor Sat, 08/05/2017 - 21:22 Permalink

Industrial Production and Capacity Utilization - G.17The Fed has published capacity utilization figures since the 1960s, spanning a number of economic cycles. All-time-high levels approaching 90% were achieved in the late 1960s and early 1970s. The deepest declines occurred in 1982 and 2009, when capacity utilization fell to 70.9% and 66.7%, respectively. The figure stands at 75% in 2016. have read here a comparison of Capacity Utilization today vs. pre 2000, 1990, 1980, 1971.Back then we made widgets today NOT, so the 76% Capacity Utilization today is calculated on less production making the comparison invalid unless you show the data the calc. are based on. 

Father ¢hristmas (not verified) Sat, 08/05/2017 - 21:27 Permalink

Proof that there is already a global central government in which myriad leaders, officials, agencies, militaries, and oligarchs cooperate:There will either never be a Wikileaks-like data dump on the Federal Reserve, or if it does occur and reveals American markets to be as manipulated as Chinese markets, then they are pulling the plug on the whole deal and are about to completely enslave everyone.

Trader Maximus Sun, 08/06/2017 - 05:19 Permalink

Good articleTyler. The connection is good but after reading Monday reports from Prechter and Shepwave I see a lot of connections. Let's wait at least until shepwave analysts give the sell signal for Dow. They have been dead on in gold,  stocks and crude plus they are the only analyst I know who shows several years of past data. Their turn cycle is coming up. 

Fitch Viscous (not verified) PrezTrump Sun, 08/06/2017 - 09:12 Permalink

That link is not to a ShepWave article. Maybe you copied the wrong link.  ShepWave been making some great calls. But they still obviously have ties left with Goldman and Elliott Wave International. So tread with caution. As far as past track record they have the best  by far. 

In reply to by PrezTrump

Dode415 Sun, 08/06/2017 - 06:21 Permalink

Trump is obsessed with the level of the dow to justify himself so my guess is he's unleashed the power of the ppt to buy the shit out of it on a daily basis !

OCnStiggs Sun, 08/06/2017 - 07:08 Permalink

As long as the number of buyers (investors) exceeds the number of people bailing out of the market, the market will continue higher. Its a simple numbers game. Right now we have millions of passive investors still cramming their 401K's and IRA's full of cash every week, blindly ignorant of what will eventually happen.When that herd awakens and starts pulling cash out, the market will start correcting. Until then, it's onward and upward. There will be volatility towards the end, but that will spur on more buyers buying the "dips."

Last of the Mi… Sun, 08/06/2017 - 09:56 Permalink

Clearly the $15 minimum wage is beginning to have it's effect. Or, a complete captured economy with virtually no competition and the Fed printing to cover it all up and maintain new stock market highs. Your choice.

Maestro Maestro Sun, 08/06/2017 - 12:07 Permalink

You talk about it but you don't understand what it means, do you? Your country, your people, your life, is a lie. The stock market has ZERO connection to the real economy.  The stock market is ONLY a money laundering mechanism for the bankers. The bankers could print trillions at will.  But they're afraid to do all of it out in the open.  So this is what they do, for example:  Banks A and B set up (through an affiliate preferably) a private bank C with non-publicly traded stock in the Cayman islands, which thus doesn't have to disclose who owns it because its shares are not publicly traded.  Bank A sells short an S&P 500 Futures contract to Bank B.  Bank C buys call options on Bank A stock and put options on Bank B stock.  S&P 500 index goes up.  Bank B makes money.  Bank A loses money (and writes off much of it as losses lowering the amount of tax due).  Bank C makes lots of money and extends loans at low or inflation-adjusted inexistent interest rates to Bank A and Bank B.  Bank A and Bank B buy Bank B's stock at significantly lower prices than they were before above operation was booked.  Next round, Bank A and Bank B trade places.  When it gets boring after a while, Bank C declares bankruptcy.  Its receivership who is an attorney who also works for Banks A and B forgives and writes off loans made to Banks A and Bank B as nonrecoverable due to exorbitant litigation costs.  Shareholders of Bank C do not object to the total loss on their bond portfolio that ensues. There are hundreds of ways of doing it. The only way to preclude institutionalized fraud is to abolish fiat and cryptocurrencies that can be created out of thin air.