UPDATE ON EVERYTHING MARKETS

Last week, we stated to expect a 3/4 point move by the fed and not a 1/2 point. Looks like the fed has now leaked that 3/4 point number. We would be surprised otherwise. Unfortunately, the bond market is laughing even more at the fed as yields soared yesterday by almost that extra 1/4 point. When they raise the 3/4 point, that will leave them at 1.5-1.75% while the ten year yield closed at 3.366% yesterday. The 5 year closed at 3.475%. In other words, the fed can raise 2 whole points tomorrow and still be behind what the bond market is screaming. The sad side of this is that the fed, because of their mistakes, are now forced to continue to play catch-up and tighten into an asset price meltdown.  Normally, they would be opening up the spigots with more massive amounts of money printing with this type of drop in asset prices.

The national media could not be more wrong this morning. They are suggesting that the fed move will raise mortgage rates. Do they not realize it is the market that sets rates and is already waaaaaay ahead of the fed and waaaay higher than the fed? Average Americans are getting bad information. Wish they would do some homework.

Our “90% of the coins will drop 90% or more with most going to 0” is being played out. Exchanges for this nonsense cannot even keep up. We expect a lot more nausea here as bubbles continue to unwind. Be wary of those telling you about great values. Be wary of the big hedgies with forced smiles on their face as they lose their —-.

High yield bonds are being crushed. We outlined for you for over 2 years how bonds that were yielding 5% should have been yielding 9%. They are now headed there. Again, all because of the distortions emanating from the fed.

Electric vehicle start-up ELECTRIC LAST MILE SOLUTIONS declared chapter 7 bankruptcy and will liquidate. This was just another scam SPAC that came out just last September of 2021. The new CEO announced all this. The original CEO was kicked out because of suspect financials. THERE WILL BE MANY MORE OF THESE MONEY GRABS GOING BYE-BYE! Con artistry in plain sight by the many. Wall Street greed but the blame must go to anyone who bought into this nonsense.

Not a big reach to say we are stretched, extended and oversold on a short term basis and beyond the beyond. Just realize that as we have stated throughout this whole bear market, rallies/bounces are not out of strength but out of weakness. They do not change the major trend/big picture. We are stunned there have not been better counter-trend moves in time and price. If we do indeed rally/bounce, it is because in just the past 3.5 days from last Wednesday’s midday highs to yesterday’s lows, the DOW lost 8.4%, the S&P lost 10.25% and the NASDAQ dropped 11.9%. These drops are stunning. Fortunately, rates are backing down a wee bit this morning with futures getting a little bit back from yesterday. Markets wil take anything good at this point.