Perspective

I feel it’s imperative right now to underscore the idea for perspective as to what is currently taking place in the “markets” and why the idea of diligence is paramount.

Here’s two examples…

First: This is an update of the chart and pattern I’ve been highlighting through its assorted progressions. Although the pattern has morphed, what has not changed, is my interpretation for what it possibly portended. Below is where it stands as of this writing after the final close today. To wit:

(Chart Source)

What I would like to point out in the above is just like I pointed out prior in what I deemed a “reflexive move” to the interpretation contained within the Fed minutes. The further continuation for potential downside today was accelerated the moment news took to the airwaves that shook said ‘Markets.”

And no, it was not Russia news, it was Fed president Bullard, once again, reiterating the potential for an even more quickening pace of everything regarding balance sheet reduction and raising rates.

So here’s why the above should be taken very seriously by anyone that has not fully grasped the precarious position these “markets” are currently in…

With the above for both a backdrop as well as portending possible turmoil, it should now come as no surprise to anyone here that we could wake up to, or even during a day session, suddenly find said “markets” in “Limit Down” status with the possibility of sessions needing to stay closed for whatever is deemed “necessary” to try and regain composure.

Yes, I just said that.

However, as always, let me be very clear: I am not stating it will, for no one knows and if someone tells you that they do, don’t just walk away, but run and fast.

All I am pointing out is what the technicals are showing and how I’m calculating, combined with what the Fed is now embarked on. Again, what happens next is anyone’s guess.

So with that on the table, let me put out something for you to both consider and to highlight why perspective and true understanding of what is really happening within these “markets” is both frightening, as well as patently (more like criminally) not even mentioned across the mainstream business/financial media complex. Ready?

If I were to tell you that at the end of today’s session the company once known as Facebook (e.g., Meta™) would have lost half its market cap of over $1Trillion dollars, wiped out any and all profits for 2022, 2021, 2020 and was now looking like it would be doing the same for 2019. Would you think I was crazy? After all, it was just five months ago it hit record highs and was in the four-comma-club.

I’ll let a picture tell the story. Again, to wit:

(Chart Source)

I could go on and on with countless others, but the above is one of the poster-child’s of just how much damage is being inflicted across the entire complex. i.e., How many pension funds and more have the above as one of its “top holdings” that was being calculated as the reason why it would be able to meet obligations (aka paying out) going forward into 2022 and beyond?

Truly contemplate it, it’s needed to truly understand what is currently happening within these “markets” to gain a proper understanding and perspective. Trust me, no one else is, nor even understands I’ll dare say.

Again, in less than five months, all those calculations as well as profits to pay them have now been erased. And we may not yet be finished, actually, we may only be just starting.

Think about that premise very carefully, because regardless of whether one wants to contemplate it or not…

That’s where we are.

© 2022 Mark St.Cyr

Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.