What a week for the stock market! First it started out flushing lower below previous week low. Then, a last moment turn around Friday saved the week from falling further. Bulls are cleansed out. Bears are cleansed out. Next week a new game begin.
Here is someone who is bullish on the short term outlook but still calling for a 50% crash.
A very interesting video from Hugh Hendry. He raised an important question – are these people holding high up positions in these largest financial institutions really having no clue of what they are doing?
As far as I can see, there are no real bears left in the stock market. Pros who shorted this weekly pullback were all doing it based on whatever technical tools they are using. Hence they get out the moment the market is no longer dropping. No one cares about geopolitical risk or the ongoing depopulation risk. Everyone in the game are now fully controlled by their fear and greed. This kind of environment is always one step away from a price shock that can lead to major disaster for the global financial system.
Here is a nice recap of how close we were from a global disaster that of course would lead to total financial meltdown. I will argue that we are very likely going to see such an event soon and this time we may be running out of luck.
This weekend is a long weekend for Canadians because our Thanksgiving holiday is one month earlier than the US one. So while my Canadian friends are celebrating or taking a break, I am working as usual.
Happy Thanksgiving my fellow Canadians!
Enjoy this weekend all!
