Fresh Charts: In This Casino, All Bets Are Off
Trying to invest and keep your sanity at the same time
This is easily the nuttiest market I’ve ever seen. But my tenure in this business only goes back to 1986. Yes, I was just beyond my rookie year on Wall Street, when this happened. That’s the year 1987 through the October 19 crash. However the trouble began in late August. After a sharp rally during late July and into August. And after a year that started quickly, pulled back, traded in a volatile range for a while.
What broke it was not “fundamentals.” It was market mechanics and function. They were not just off a bit. They were downright dangerous. Just as they are now.
Bottom line: forget the narratives and the fundamentals. This is a traders’s market, periods. Asset flows and faith. That’s it.
Which is why I think EVERY serious investor needs to understand this chart below, and heed its warning…