According to the talking heads Tuesday was just a bull market “retest” of last week’s lows, which posted at 1867 on the SP 500. As is evident below, the test was passed with 80 points to spare at today’s close.
So according to the bull heads—–CNBC had three of them on the screen at once about 2pm—–its time to start nibbling on all the bargains. Why, in no time soon you will want to start backing up the truck.
You can see it right here in the charts. The market hit the October 15 Bullard Rip low last week, and has now gone careening upwards where it is now forming a new bottom around 1950. Remember, its a process. Be patient.
Not on your life! The world is heading into an unprecedented monetary deflation——with output and trade falling nearly everywhere. That implosion is already rumbling through Canada, Mexico, Brazil, Australia, South Korea, Malaysia, Indonesia, Russia, Japan, the Persian Gulf oil states and countless lesser economies in between. And at the center, of course, is the unraveling of the Great Red Ponzi of China.
In the face of this on-coming economic storm, honest financial markets would have been selling off long ago, and, in fact, would never have approached today’s absurd levels of over-valuation. But financial markets have been hopelessly corrupted by two decades of massive central bank intrusion and falsification of asset prices. Consequently, Wall Street punters and their retainers and cheerleaders cannot see the forest for the trees.
Thus, one of today’s CNBC permabull threesome reassured viewers that the US economy is chugging along in fine fashion and that China is a big problem——but for the policymakers in Beijing, not the SP 500.
The 1000 points of fright last Monday is actually a gift. You can now buy the market at 15X, which is tantamount to a steal.
Let’s see. The implied “E” in that proposition is $130 per share on the SP 500
Originally appeared at: http://davidstockmanscontracorner.com/this-is-not-a-retest-its-a-live-bear/