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One More Damn-the-Torpedoes Rally?

By Rick Ackerman Posted on March 24, 2019, 5:05 pm EDT Last Updated March 24, 2019, 11:20 pm EDT

Economic news turned menacing last week and featured a yield-curve inversion as well as a grim assessment of the slowdown in Europe and China.  It’s tempting to think stocks were finally starting to show some common sense when they began Friday with a bearish gap, sold off hard for the next three hours, then closed on the low tick of the day after a failed rally. Contrition at last! It increased my already strong doubts that the powerful bounce begun on December 26 is destined for greatness.  However, it will have increased everyone else’s doubts too, and that’s why I am wary of sounding taps quite yet for the ten-year-old bull market.

Mounting bearish sentiment is one of the most powerful things the stock market has going for it at the moment. As long as it continues, the potential for a short-covering rally, possibly even to new highs, will remain. This would surely be accompanied by more ray-rah hubris from The Wall Street Journal et al. about how unemployment is low, wages are rising, and economists are unconcerned about the possibility of a recession. If low unemployment actually meant something, then why is America’s middle class struggling to stay afloat, in hock up to its eyeballs?

Of course, if all else fails, we’ve always got the Fed to come to the rescue.  Yeah, sure. Sooner or later, the epiphany will dawn that we cannot borrow our way to lasting prosperity. For in fact, virtually every penny we’ve borrowed to sustain this transparently nutty idea and the illusion of good times will have to be repaid. A day of reckoning can be postponed, but it cannot be avoided.

  • leo bissett March 27, 2019, 5:53 pm

    Rick. thanks for your reply this was the first time I heard of you as I was watching watchdog this morning. I learned a lot of stuff I did not know and view you as a very practical man. My concern about Zionism coming from AIPAC this week is this: Any criticism of global Zionism is considered racism and even criminal. Anti-Zionism is not antisemitism. This may become law. Zionism is a political movement . Do you not see this Rick? If you see this different I would like to hear your thoughts.

  • leo bisssett March 27, 2019, 8:20 am

    Great stuff John Jay especially the idea of publishing a list of assets of the 1000 families and vote to repay or delete. What many don’t realize is that the federal reserve is not federal nor do they have a reserve they operate on a fractional banking principal of lending 10 times more money than they actually have and charging you interest. Central banks are criminal and control the issue of money and then start wars when the floor falls out. we will not escape this quagmire. Either civil war, Zionism, or complete collapse of fiat money is right now on the border.

    &&&&&&

    Your host, Leo, believes that Israel, in its quest to survive, can literally do no wrong, so I guess that makes me a Zionist. I agree with your assessment of the financial system nonetheless, and, like you, view its collapse as inevitable. RA

  • John Jay March 25, 2019, 2:07 pm

    None,
    I think the reason Trump has met such fierce attacks by the Democrats is not because he will be able to shut the borders, or meet any of his pledges. The RINOs in Congress will join the Dems in stopping any of that from coming to pass!
    What ignited their hate was that he offered a glimmer of hope, and a kind word to legacy Americans, that have seen their country turned into a province of Mexico and China by decades of outright treason in DC.
    A kind word and a glimmer of hope that was last sent their way in the Kennedy administration!
    Hillary was ready to put the final nail in the coffin of legacy Americans, and this Trump character put some fight back in them, and let them feel they could claw back something of what they have lost since LBJ rose to power. And this after they had been thoroughly cowed to cower and scatter with the word “Racist!”
    I believe it really is that simple, Trump changed the narrative, and legacy Americans found a Champion, however flawed and erratic he might be.

  • none March 25, 2019, 1:03 pm

    Mueller Findings:

    Torpedoes and much more.

    “What is obvious is obviously wrong”, and this indeed applies to what has taken place.

    Those that think or are observing this is a win for Trump cannot be further from the truth and the real reality is far worst to come.

    In fact, we are seeing a complete break down towards any trust what so ever, and losing faith is key towards extremes turns in sentiment.

    Whipsawing sentiment is like the large scale damage crops we are seeing in the north mid west today, continuing rising levels of a wash out part of history taking place is at hand.

    Trump my suffer in a far greater negative event. The government though will continue as is.

    The quarterly trading range of the last 2 years in the stock indexes, are an extreme event. Many can suggest its a trading range or consolidation towards higher prices.

    The increase volatility of this range is important to observe, as its 20% trading range suggest extreme ‘distribution’ towards and high point level going back decades and a century it is a 1st.

    The range now lock in at the end of his month will place the pricing of the high and low towards a breakout, suggesting that the market will only be in wave1 creating a 1st wave move of 20% in pricing. It will be the test back latter towards that breakout level, that the wave3 move will come in.

    Wave3 could come in with a count towards 10-15k points.

    Observe the high of 2015 and the low of 2017 a place or price level for the breakout wave1 to end, and the test to begin.

    Wave3 move could be an extreme move towards the 20 year low level.

    This is quite disturbing.

    For Trump and well just about everyone else to fact.

    Have a great day Rick.

  • John Jay March 25, 2019, 12:03 am

    Rick,
    Remember “Why should we repay scoundrels?”

    The Blue and Grey did not have to maim and slaughter each other for five years.

    The English/French/Russians did not need to resume the slaughter with the Germans/Austrians once the Christmas Truce took hold.

    And we do not need to repay the debt held by the oh, say 1,000 families that own the entire planet.
    The same 1,000 families that bribed DC to institute Open Borders, Free Trade, etc. that made them obscenely wealthy and destroyed the United States.

    The problem is always that the folks at the top of the heap buffalo the poor saps paying with their lives into killing each other at Gettysburg, the Somme, you name it.
    It is the same thing with the huge Debt created out of thin air by the top 1,000 that the MSM and DC are telling 8 billion poor saps now needs to be “Paid” by them.
    As I have said before, no one in the MSM or DC have ever proposed taking the money out of Politics, or proposed making those 1,000 families an “Offer they Can’t Refuse.”
    How about we publish a list of the assets owned by the top 1,000 families, and we all vote on whether or not the debt they hold should be repaid or simply deleted.

    Will the Schmucks smarten up this time?
    Will they “Just say no” this time?

    Probably not,the prospect of miserable death in our Civil War, and WWI didn’t seem to make them question the narrative that they all had to kill each other.
    We will eventually find out.


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