The Chinese stock market has blasted higher by 40% in just a few trading sessions, thanks to the Communist Dictatorship, desperate to cling to power until the end of time, continuing to spray trillions of yuan all over the backs of Chinese “investors” who were growing weary of losing money. In the end, it’ll end in catastrophe, but so far, it is resulting in an unprecedented rally.
That was echoed in the U.S. as well, at least for a little while. It seems the efficacy of the fiscal money shot has already worn off here, with all stock futures in the red.
That red line, incidentally, marks the July lifetime high for the /ES, and things seem to be getting kind of wobbly here. Just about the only one of my 15 positions that isn’t looking great this morning is PDD, my new Chinese position. I’ll probably drop-kick it, even though today’s opening price is likely to be the high for the rest of 2024.
It also helps that the AI Mania is continuing to show signs of its age, in spite of Sam Altman and his boy-toy husband’s persistent efforts to prance around the globe declaring how AI is going to save all of us from ourselves, and gosh, it’ll be just swell. As you know, I personally find this entire AI thing to be the most comically overblown pile of financial nonsense in history, vastly dwarfing the housing bubble, and I think the house of cards is already starting to quiver.
My puts in AMD and ARM are looking good, led by the king of king, and the host of hosts, Nvidia. The rectangle, incidentally, is when Jensen Huang screamed out how things were amazing at his company, which is important since he’s dumping ungodly amounts of NVDA shares and needs to prop up the value as much as possible to maximize how much cash he extracts from hapless retail investors. Virtually the entire mega-rally from last week has already had its nuts blown off.
Even gold, against which I own puts, is slip-sliding away. As I said, PDD notwithstanding, it’s looking like a great morning.
Take note, however, that Pencil Dick is speaking today. I’m not sure what self-serving lies he’s going to dish out, but just be aware that an intraday spewing of Fed garbage is forthcoming.
Of course, public speaking is the ONLY thing these megalomaniacal control freaks do. It’s a shame the common public is too blinkered to realize how deeply evil the Fed really is.
Time to walk the dogs. May the farce be with you.
