Art Cashin: ‘The Rally is Getting Long in the Tooth’

Art is also worried about “Trump’s twitter machine” and how he might use it to unleash an unholy firestorm against the Yellen Fed post rate hike — saying “see I told you fuckers the Fed would hike once I got it.” This has Art a little worried. Other than that, there are some idle concerns over the veracity of the rally and the willingness of the rabid animal dogs at the Fed to press forward with multiple hikes in 2017.

Considering the fact the market has done most of the heavy lifting for the Fed, with the 10yr rising from a post Brexit low of 1.36% to 2.45%, Art and others want to know what in the hell the Fed will do in 2017?

Will the dot plot return?

The one benefit of a Trump-Pence administration is their desire to get rid of onerous EPA regulations. Prior to the elections, utility stocks outperformed all others because of their high yields, inverse beta, and due to its traditional safe haven status.

Other defensive sectors that shared in that glory, pre election, were gold, bonds, REITs and high yielding old man stocks. Well, all of those have been beaten like a piñata since the election, but suprinsingly the utes have done fantastic.

Year to date, water utilities are up a staggering 38%.

This is the performance chart of the entire utility sector over multiple time periods, all green.

And here are the water utilities, up 9% over the past month.

The idea that Trump will save the utilities billions in reduced EPA regulations might be a bit overzealous, considering the fact that he isn’t even in office yet. Clearly, Wall Street is making a bet. It’s worthwhile to note, the utes are likely the preferred destination for bearish investors now, replacing bonds — which have been tossed to the side ever since the inflation narrative and blowing out GDP growth has been pushed.

XLU is the most actively traded ute and UPW is leveraged.

Fun fact for all of you home gamers out there: hote/motel REITs have outperformed all financials since Trump was elected. In spite of the widening yield curve and move into risk assets, somehow this group of stocks, likely helped by the fact that Trump is a hotel man, lead all — higher by 15%.

Here are the stocks in the industry.

It’s worth noting, the 2/10 yield curve is tightening a little today — but still 130bps. This is the reason why banks are running higher. They’re all so much more profitable at 130bps than at 70bps — which is where they were prior to the election.

Today’s winners are in tech. Although just 56% stocks are higher today, tech is forcing people to behold the greatness of the stock market and to behold the specter of Dow 20,000.

The Amazon black hole continues onward, crushing all shopping mall stores in its path, reducing them into closet space for Jeff Bezos.

PJW went hamburglar on the dems and the media in this one and left them with zero hamburgers to eat. He touched on Russian hacking, CIA horseshit, Democrat horseshit and the hypocrisy of it all.

My time on Wall Street taught me the vast majority of traders and investors, in varying degrees of success, are nothing more than infantile sociopaths. These are childish men with penchants for superstition. There isn’t a chance in hell the Dow doesn’t hit 20k before the year is up.

Fucking retards.

I’m sure the options markets are loaded up with premium now, so there’s likely very little upside there. The move from these levels is a little more than 200. It’s gonna happen. I promise you. I’d bet my fucking testicles on it.

Early going, all of the risk on trimmings are presenting themselves. No need to repeat. It’s noteworthy to see Italian markets going apeshit after they fired their President. Understand something, everything is good news.

Tomorrow is Yellen day. She’ll hike rates and tell us to expect more. Markets will love it, Jack higher to Dow 20k, then everyone with circle jerk to the Wall Street soundtrack.

It’s all a gigantic fraud, but one highly predictable. I realize my actual positions don’t jibe with what I’m saying now. Consider my portfolio dead man walking. All will be cast aside and I’ll start fresh in 2017.

Gunshot to the head pick: banks continue higher, Dow 20k soon, WTI $60 — all before year end.

I’m not a particularly big fan of Newt, mainly due to his connections with CFR and neocon scum. However, on the teevee, he serves as a good source of entertainment when mocking and belittling the left — making them look like asinine children — pouting, kicking and screaming because their nuclear toys were taken away.

On top of criticizing the left for pushing their paradoxical Russian hacking of the election charge, Newt also lays waste to the main stream media, a particularly fun hobby of mine — suggesting that they’re so butthurt by the abject rejection of the American people — they’ve become wholly uninterested in covering real news and instead live in a garish world of fantasy, festooned with lies and deception.

‘The cannot come to grips with the reality that the American people are turning against them.’

Enjoy.

China is now running stupid at 260% debt/GDP. In theory, China can borrow until the country sinks under a mountain of IOUs. But, odds are, sooner or later the gigantic debt load that China is building will destroy the entirety of the country — hook, line and sinker.

Consider the following stats of countries that China enjoys bountiful deficits and then tell me how sustainable they are, in terms of being a steady and loyal consumer base.

Hong Kong: US$321.5 billion (country-specific trade surplus in 2015)
United States: $260.3 billion
Netherlands: $50.8 billion
India: $44.9 billion
Vietnam: $41.3 billion
United Kingdom: $40.7 billion
Singapore: $25.6 billion
United Arab Emirates: $25.5 billion
Mexico: $23.7 billion
Spain: $16.3 billion

We hold all of the cards. With the advent of our Fed buying up Federal Debt, we have little use for China, other than to produce low quality shit for us. Trump knows this and understands that there’s a lot of negotiating power on this end — especially when a small reduction in US trade can cast such a deleterious effect on their credit standing it would literally leave them in pools of their own panic induced urine.

A strategist from HSBC discusses the many hurdles China will face in 2017. Make sure to pay attention.

This is all getting perfectly out of hand. How to best explain this one? Let’s see if I can do it in less than 500 words.

Louise Mensch runs a conservative ‘up and coming’ start up website called HeatSt. They are owned by News Corp under the large umbrella of Dow Jones. In other words, not so start up. Also, and it’s worth noting, HeatSt is the very definition of controlled opposition. HeatSt has the look and feel of being spartan and authentic, but under its deceptive facade are corporate cucks toiling away for globalism.

Louise was outed during the Presidential campaign for being as shill, who worked in private for the Clinton campaign. Her followers were quite shaken about that and let her know it by giving her hell on Twitter.

I suppose being a liar and deceiving her audience wasn’t enough for Louise. Now she wants WORLD WAR 3, literally — all because her little email was hacked into and she was outed for being a duplicitous mountebank.

Her Twitter feed reads like an insane anti-Putin screed by a would-be serial killer. But I managed to cobble together the money shots — courtesy of The Donald.

Louise is a former British MP living in the states, with a keen interest in making American bleed. It’s a wonderful thing when emotions cause people to reveal who they truly are.

Before making such moronic comments, I suggest Ms. Mensch should read up on Russia’s nuclear capabilities and understand the ramifications of starting armed conflict with a nation who can ferry over ICBMs at mach15 to our cities.

A simpler solution a precision brain surgery on @LouiseMensch to improve her reasoning abilities. https://t.co/9ATf8QC7BC

— NassimNicholasTaleb (@nntaleb) December 13, 2016

This is one of those special moments in time that I do not need to read the news, for I already know what the problem is with retail.

The internet spawned Amazon. Amazon was created to destroy the brick and mortar retailer in order to free up storage facilities to eventually store our bodies, which will then be used as batteries to energize the Matrix. So when you’re enjoying your faggot latte tonight, whilst perusing over some eveningwear at Macy’s, just know that at some point in the not too distant future, your body will be stored there — with thousands of others — to provide the machines with the power they need to operate and manage the globe.

$JCP, $M, $DDS, $KSS, $M, $SHLD, $SSI, $ANF, $ASNA, $GES, $JWN, $BKE, $URBN, $FINL, $AEO, $TCS, $BKS, $PRTY, $DKS, $JOUT, $NLS, $PIR, $RH, $WSM.

In other news, sales for Call of Duty are way down — according to analysts.

Source: Fortune

NPD reports for November, sourced by Cowen analysts with access to the data (via CNBC), reportedly show that retail sales, aka physical copies of Infinite Warfare are down almost 50% compared to first month Black Ops 3 sales this year. This echoes a similar drop that was first noticed in the UK, and Cowen wrote in a note to clients that these numbers come in 17% below their expectations for the game. Overall, Activision shares are down about 20 percent from October.

Santa has been slain. Krampus is coming instead.

Good old Frog Face McConnell is joining the other republican losers, who apparently do not know how to win, in calling for an investigation into Russian hacking of the elections. It appears Trump’s attempts to appease Frog Face by choosing his wife, Elaine Chao, for Treasury Secretary — failed to have the intended effect.

Senate Majority Leader Mitch McConnell: "It defies belief" that some Republicans don't want to investigate Russia https://t.co/ckmyXCZnnY pic.twitter.com/FxgWYVbL6a

— CNN (@CNN) December 12, 2016

More from the NEOCON SCUM. War with Russia, so smart.

.@SenateMajLdr Mitch McConnell: "The Russians are not our friends." https://t.co/MAgTSdUrBm https://t.co/e4ZndDh6Jp

— ABC News Politics (@ABCPolitics) December 12, 2016

The establishment elite shills want Trump out. Expect this to accelerate in the days and weeks ahead. The next level of fuckery will then include dubbing this as Watergate 2.0 and calling for the arrest of Trump. If in office, they’ll simply continue this investigation until they can impeach him. These are the cards of duplicitous, evil, men.

Where’s Batman when you need him? Then again, we might need Bane instead.

HOW DARE YOU’VE READ JOHN ‘PIZZA, NO HAIR PLEASE’ PODESTA’S EMAILS. HOW DARE.