OH WAIT, I guess they do..... Pretty sad, The rest of the world isn't doing so well, BUT with the FANNGS everything is fine, scary,,,,,,,,
Authored by Sven Henrich via NorthmanTrader.com,
New highs every day or so now. Investors are chasing the new highs, the president celebrates on twitter almost every day. Things are great. Melt-up talk is the rage.
Hate to be the seemingly lone voice of caution here, but something smells. Look, I get narratives are changing all the time to suit the price action of the day, but I distinctly remember how no weakening data has mattered this year as people kept citing how strong the consumer remains despite all the trade war uncertainties and the manufacturing recession.
And even just during the recent rate cut meeting in October Jerome Powell insisted that the U.S. consumer continues to stay strong and that the economy is in a good place. Seems a bit optimistic with a mere 0.73% Q4 GDP growth downward projecting coming out today by the New York Fed Nowcast. But hey.
This week the Fed’s Barkin had something similar to say (with a little qualifier added) and as markets jumped to new highs I noted a curious divergence on the side of the consumer sector:
Sven Henrich
✔
@NorthmanTrader
Earlier - Fed's Barkin: As Long As US Consumers Continue Spending, The US Economy Is In A Good Place
I'm a curious fella:
If things are so great why is the consumer discretionary sector suddenly no longer leading, but lagging, not making new highs but making lower highs?
Note how the consumer sector has led the past rallies in 2019, and now it is distinctly lagging.
But it’s not only $XLY. Who else is massively involved in the retail trade? $AMZN of course.
New market highs without $AMZN? Unthinkable, being one of the key $FAANGs. But no, $AMZN is showing the same sudden weakness:
LOT MORE with charts..
http://www.zerohedge.com/markets/trader-warns-something-stinks?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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