Well, there’s the GDP, and it’s negative. I only watch CNBC eight times a year – – that is, before and during the FOMC circus – – so yesterday, as I was watching, I could not believe how many experts were coming out and saying that the GDP would be modest, but positive. It all goes with the everything-is-always-great narrative that, evidently, some Slopers embrace. But it was a big miss. Here we see that the last two quarters were not only a miss, but also a substantial delta from their projections.
Of course, in this bad-news-is-good-news psycho ward that we now inhabit, the fact that the economy is withering away is GREAT news for stock buyers, because it means that the Fed will run screeching in the opposite direction from their minuscule QT efforts and, as they have for the past thirteen years, absolutely dump cash onto the heads of asset buyers. As I’m typing this, the ES and RTY are green, and the NQ is working on it. Here’s the /ES, which dumped briefly after the GDP but then realized the stock buyers have the Fed by the short hairs once again.
Let’s see how things look fifteen minutes after the cash markets open, once there’s been a little time to digest this negative news which has already been turned into a cause for celebration.
