Trader Alert: The Euphoria Phase Of The Bull Market Is Now Entering Its Final Parabolic Phase That Always Crash

We Are Headed Directly Into A Brick Wall Where Everything Just Stops

Every market is going in the wrong direction in preparation for what is coming.  Yes I know, this is always how it works when bubbles are being blown. Money is pouring into bonds in particular, stocks are being propped up and margin balances swollen, people are also being prodded into “selling” their Gold (paper obligations).

As I see it, we are headed directly into a brick wall where everything just stops.  “Just stops” as in all markets are closed and you have what you have- which will either be marked up…or down on the day that the music starts again.

Submitted By Bill Holter, Miles Franklin Ltd,:

The global economy(s) has decidedly slowed down everywhere you look and at best is treading water.  The GDP calculations done of course are bolstered by $ trillions of new debt so without the “debt growth” we would be in full fledged depression.  Yet, stock markets nearly everywhere are ebullient and making either all time or multi year highs.  A disconnect for sure but is explained because of central bank easy money.
Some have even looked at this phenomenon (myself included) and concluded that rising stock markets are a result of easy monetary policy. … Which hasn’t/won’t kick start the real economies.  This is a classic sign that hyperinflation is in the cards, and this conclusion is based not on opinion…but history.

…

Charting Irrational Credit Bubble Exuberance Euphoria

If there is one market that represents the sheer unbridled lack of respect for risk it is the Greek Government bond market. In the last year, GGB prices have surged 380% from under EUR 14 to almost EUR 67% of par today! That is a plunge in yields from over 29% in May 2012 to a mere 8% currently (US Treasuries yielded 8% in 1994)… The driver for all this exuberance? Every major macro data point for Greece has worsened from a year ago – from unemployment to GDP growth… behond the ‘wretch’-for-yield. Or perhaps we are overthinking it: it appears that Greek bond prices are merely matching Greek youth unemployment almost tick for tick: expect GGBs to hit par when every single Greek between the ages of 16 and 25 is out of a job.

US Macro Data At Its Worst In 8 Months And The Markets Are Just As Stunned By Equity Exuberance

US Macro data is its worst in 8 months…

(note – the US Macro index is Bloomberg economic surprise index which not only tracks absolute performance but relative to consensus – so we missing expectations and macro data is dropping…)

and the markets are just as stunned by equity exuberance…

Read more at http://investmentwatchblog.com