{"id":20150,"date":"2016-04-21T21:14:26","date_gmt":"2016-04-22T02:14:26","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20150"},"modified":"2016-04-21T21:14:26","modified_gmt":"2016-04-22T02:14:26","slug":"april-cheers-could-bring-may-tears-have-a-look","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20150","title":{"rendered":"April Cheers Could Bring May Tears, Have a Look\u2026"},"content":{"rendered":"
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April Cheers Could Bring May Tears, Have a Look\u2026<\/a><\/h3>\n
When people stop trusting a market they stop using that market. \u00a0Trust\u00a0is at near 20\u00a0year lows. \u00a0The conundrum is that as volumes decline it becomes ever easier for price insensitive participants to\u00a0manipulate the market only furthering the distrust. \u00a0This first three\u00a0charts depict the deterioration of volumes and capital outflows in the face of a \u20187 year bull\u2019. \u00a0A hard to explain phenomenon.<\/div>\n<\/header>\n
\n

\"Screen<\/p>\n

Raw Price to Monthly Volume:<\/p>\n

\"Screen<\/p>\n

And the capital outflows\u2026.<\/p>\n

\"Screen<\/p>\n

Now\u00a0I\u00a0heard Rick Santelli<\/a>\u00a0yesterday discuss whether the market can continue its run to new all time highs. \u00a0And with the obvious caveat of completely\u00a0accepting that the fundamentals no longer have any correlation or relevance whatsoever to the market then yes, Santelli\u00a0believes the market can reach all new highs. \u00a0On what, one may reasonably ask? \u00a0Well \u201ckinetic energy\u201d, he says, otherwise known as \u2018Animal Spirits\u2019 on Wall Street.<\/p>\n

But it\u2019s not so much kinetic energy that is levitating this market devoid of any supportive fundamentals, it is the fact that volumes are thin enough and technology has progressed enough that it has become entirely viable for existing policy champions (NY Fed\/Citadel algos)\u00a0to halt even drastic\u00a0downward momentum runs and then for corporate treasury departments to grind the markets higher through record buybacks. \u00a0What we have left is a market of price insensitive participants\u00a0i.e. corporate treasury departments and the Fed\u2019s cronies (who incidentally make a fortune enacting the manipulation on behalf of the Fed).<\/p>\n

Now I know that the last few remaining true believers, because I\u2019ve talked to several, will\u00a0suggest this explanation is just fancy talk. \u00a0But I ask you to look at the above charts and explain to me how else a market runs higher for 7 years in the face of the capital and volume exodus that has taken place?<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

April Cheers Could Bring May Tears, Have a Look\u2026 When people stop trusting a market they stop using that market. \u00a0Trust\u00a0is at near 20\u00a0year lows. \u00a0The conundrum is that as volumes decline it becomes ever easier for price insensitive participants to\u00a0manipulate the market only furthering the distrust. \u00a0This first three\u00a0charts depict the deterioration of volumes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[9476,303,6454,13598,4492,6455,3650],"class_list":["post-20150","post","type-post","status-publish","format-standard","hentry","category-economics","tag-citadel","tag-fed","tag-first-rebuttal","tag-ny-fed","tag-rick-santelli","tag-thad-beversdorf","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20150"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20150\/revisions"}],"predecessor-version":[{"id":20151,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20150\/revisions\/20151"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}