Trader Alert: The Euphoria Phase of The Bull Market Is Now Entering Its Final Parabolic Phase That Always Crash

We Are Headed Directly Into A Brick Wall Where Everything Just Stops

Every market is going in the wrong direction in preparation for what is coming.  Yes I know, this is always how it works when bubbles are being blown. Money is pouring into bonds in particular, stocks are being propped up and margin balances swollen, people are also being prodded into “selling” their Gold (paper obligations).
As I see it, we are headed directly into a brick wall where everything just stops.  “Just stops” as in all markets are closed and you have what you have- which will either be marked up…or down on the day that the music starts again.
Submitted By Bill Holter, Miles Franklin Ltd,:
The global economy(s) has decidedly slowed down everywhere you look and at best is treading water.  The GDP calculations done of course are bolstered by $ trillions of new debt so without the “debt growth” we would be in full fledged depression.  Yet, stock markets nearly everywhere are ebullient and making either all time or multi year highs.  A disconnect for sure but is explained because of central bank easy money.
Some have even looked at this phenomenon (myself included) and concluded that rising stock markets are a result of easy monetary policy. … Which hasn’t/won’t kick start the real economies.  This is a classic sign that hyperinflation is in the cards, and this conclusion is based not on opinion…but history.
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Charting Irrational Credit Bubble Exuberance Euphoria

If there is one market that represents the sheer unbridled lack of respect for risk it is the Greek Government bond market. In the last year, GGB prices have surged 380% from under EUR 14 to almost EUR 67% of par today! That is a plunge in yields from over 29% in May 2012 to a mere 8% currently (US Treasuries yielded 8% in 1994)… The driver for all this exuberance? Every major macro data point for Greece has worsened from a year ago – from unemployment to GDP growth… behond the ‘wretch’-for-yield. Or perhaps we are overthinking it: it appears that Greek bond prices are merely matching Greek youth unemployment almost tick for tick: expect GGBs to hit par when every single Greek between the ages of 16 and 25 is out of a job.

US Macro Data At Its Worst In 8 Months And The Markets Are Just As Stunned By Equity Exuberance

US Macro data is its worst in 8 months…
(note – the US Macro index is Bloomberg economic surprise index which not only tracks absolute performance but relative to consensus – so we missing expectations and macro data is dropping…)

and the markets are just as stunned by equity exuberance…



Charts: Bloomberg

Stock Market Will Crash Within 2 Months! Here’s Why

Connor goes on to say in further edited excerpts:
Depending on how far above the 200 day moving average it ends up stretching, I think there’s a pretty good chance we will see the entire intermediate rally wiped out in a matter of days or even hours when this house of cards finally comes tumbling down. That is how these runaway moves terminate. They crash! Parabolas always crash.
[Runaway moves]… can go on and on for months and months with savvy investors becoming more and more nervous the longer the move persists. The longer the trend continues the more professional traders all position right next to the exit, until finally one day everybody tries to get out the door at the same time. It’s that mass exodus to lock in profits that triggers the crash. The magnitude is determined by how far and how long the market stretches above the 200 day moving average.
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Evidence mounts on slower U.S. economic growth
Bernanke’s ‘recovery’ is no recovery at all. The US economy is on Fed life-support and can’t regain enough momentum to escape growing deflationary pressures.
Eurozone sinks into longest recession
France leads EU slump after weak exports and Germany posts slow start to year as austerity continues to bite.
Car burnings rise as France threatens to take euro crisis to ‘higher plane’
The billionaire boss of CQS, one of London’s biggest hedge funds, has written to investors warning them that the France could trigger another more dangerous phase of the debt crisis and rock the fragile global recovery.

Global Slump, Continued Stagnation of US Economy. Sharp Increase in Jobless Benefit Claims

Signs of growing economic and social distress in the US coincide with an accelerating downturn in Europe and slowing growth in China. On Wednesday, the European Union’s statistics agency said that the economy of the euro area contracted for the sixth consecutive quarter, after having posted record unemployment rates earlier in the month.
The number of people in the US who filed new claims for unemployment benefits grew by 32,000, hitting 360,000 in the week ending May 11—significantly higher than economists had predicted.
US industrial production fell last month, registering its sharpest decline in eight months, according to figures released Wednesday by the Federal Reserve. American factories, mines and utilities reduced their output by 0.5 percent in April, compared to a predicted drop of 0.2 percent.
On Thursday, the Federal Reserve Bank of Philadelphia said its economic index for the Mid-Atlantic region fell dramatically in May, to minus 5.2 from plus 1.3 in April, indicating an economic contraction.