Back to the trade deal we are…
“Crazy Overnight Session Ends With Another Futures Rally”, ZH
On May.15th, right around the time when countries began easing lockdown restrictions, ZeroHedge did a pretty good job of summing up the narrative that seemed likely to be used by the financial news media as justification for the inexplicable price action that we would probably see in the indexes following the feds decision to bailout the banks.
“The good news: now we can rally on “hopes” for progress in the trade war as we did every single day of 2019, in addition to “hopes” for a quick reopening from a global pandemic that has cost 40 million US jobs. In short, the world may be in a depression, and one false flag away from trade war turning into kinetic war, but stocks will keep rallying on “optimism.” Link
Although many people will reference the performance of the airline and hospitality industry as evidence of how unrealistic these valuations have become, those examples seem to pale in comparison to what’s been going on in the small cap sector over the past few months, where it’s become almost common place to see tickers suddenly spike 1000%+ for what appears to be no logical reason whatsoever.
Listed below are just a few of the more notable examples (although there is many more).
Urban One (this one was insane)
Hype stock of the day at R/Pennystocks
It’s become very apparent over these last few months that the media, the banks, and even the government are fully willing to play their part in preventing this decade long bullrun from finally coming to an end, even while economist and market specialists alike continue to cite figures that by any stretch of the imagination should signal alarm bells in even the most bullish of market participants..
“1 in 3 S&P 500 Companies Have Withdrawn EPS Guidance for 2020”
“blended (year-over-year) earnings decline for Q1 2020 is -14.6%” (biggest single year-over-year decline since 2009
“Analysts expect an earnings decline of -20.8% and a revenue decline of -3.9% for CY 2020”
“For Q2 2020, analysts are projecting an earnings decline of -42.9% and a revenue decline of -11.5%”
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