Yesterday evening, word came out that Apple was dialing back on its iPhone production, because apparently the people of Earth decided that having a 17th camera lens on the back of their phones was something they could probably do without. Thus the /NQ sold off hard, and the /ES got to a new low for the year at about 3600.
Of course, this news shouldn’t have been too big of a shock. The day the iPhone came out, so did this meme, which tells the story nicely:
And cartoonists realize this simple truth:
Unfortunately for the bears, the bigger news is that the spineless, weak-willed nature of central bankers around the world has revealed itself yet again. England in particular has fled in terror from the financial mayhem it has caused, and has already thrown the QT lever back to QE in a desperate bid to shore the economy up. Naturally, this won’t work, but these lunatics don’t know what else to do. Below shows how the government bonds have been faring lately.
As I am typing these words, every single stock future has gone bright green, from being all red last night. The chart below, which is only a few minutes old, doesn’t even reflect the breakout which just happened. So the bulls are yet again getting the relief they have been craving.
For the past six trading days, this exact same scenario has played out in one form or another: the bulls will have Some Really Good Reason that the market is about to blow higher. Here, on the 7th day, unlike God, they are not resting, and they’ve come up with the latest one, which is that someone the Bank of England buying bonds is miraculously going to turn around the entire planet’s recent $29 trillion loss in asset values. Eventually a rally will stick, yes, and it might even last two to three days, but this is a bear market, and the bulls are going to lose every time (sort of like the bears lost every time from 2009 through 2019).
At this point, we’re in the exact same situation as we were yesterday:
