Unicorns

Recent and prospective IPOs:

Nothing to see here, move along. It’ll be fine. Really.

Medicare For All?

When you see the bizjets parked all over the nearest airport around a big sporting event, chances are that most of them are serving executives of healthcare companies. The current healthcare system is one giant rip-off that costs twice as much as any other and delivers inferior outcomes overall. It is responsible for the majority of personal bankruptcies.

I am no fan of government, but even government incompetence would be better than the outright larceny embodied in the current system. Unfortunately, there is zero chance that it will be changed. The healthcare companies, led by the “insurers” and big pharma will simply pay whatever it takes – and it won’t be much compared to their rapacity – to buy the votes to stop any such initiative. Their larceny is exceeded only by the corruption of the political system.

Groundhog Day

This, from zero hedge, says it all:

This is the part in Groundhog Day where Phil Connors kills himself again, and again, and again.

With stocks itching for a new excuse to levitate higher, they got that overnight when a Reuters report on fresh “progress” in the U.S.-China trade talks and renewed “optimism” in a trade deal helped propel world stock markets to a 6-month high on steered investors away from save havens such as the Japanese yen, even as 10Y treasury yields dipped modestly, as the same catalyst that has driven stocks higher on virtually every single day in the past quarter has continued to do so again and again, right out of the cult groundhog movie.

It was a great movie and had a happy ending. Too bad this will not end as happily.

FOMO!

FOMO is the Fear Of Missing Out. It is the only reason I can think of for this continued market advance in the face of a economic newsflow that shows rapid weakening, other than of course another massive liquidity injection by the Bank of China.

The semiconductor index is a mystery inside the main enigma. Even the Russell 2000, usually the highly volatile home of small speculators, is under-performing the S&P, as are both the NDX and the broad Nasdaq. Yet the semis are up 1.3% as I write, even after more than 7x gains since the beginning of the bull, while the industry is foundering in the face of lackluster demand. Bizzare.

Are You Kidding Me?

Thanks to zero hedge.

Unicorn

Apparently Wag!, the so-called Uber of dog-walking (yes, really!) now has a pre-IPO valuation of $1 billion.

Memories sure are short.

Enough Already

How long can Trump and Xi continue to goose the markets with optimistic statements without actually achieving a substantive deal?

Either there’s something else going on or the algos are gullible enough to jack up prices with any hopeful words, but never disappointed with the inevitable walkbacks?

The Price Is Not Right

Note that the government funded cartels are stealing everyone’s money.

There’s A Hole In My SOX

Trumpets Off

Yet again, President Trump tweets out positive words about progress on a trade deal with China ten minutes before the S&P futures open. What BS. The algos react and spike the futures. This is now a pattern and is clearly a deliberate manipulation of the stock market. He’d better not disappoint, is all I can say.

The other pattern is the Friday VIX crush, consistent every week this year.

I’m flat so it doesn’t affect me immediately, but the more overbought the market gets the more vulnerable it is.