The Frogs Are Boiling Again – Why Wall Street Stays In The Pot

Thursday, May 12, 2016
By Paul Martin

by David Stockman via Contra Corner blog,
ZeroHedge.com
05/12/2016

Tuesday’s spasm of machine rage begs a question. After the S&P 500 has chopped sideways for 600 days in no man’s land either side of 2060, and given the baleful headwinds now gathering from all points in the global economy, there is absolutely no reason to stay in the casino.

At that session’s closing level of 2084 there was, at best, a 2% upside back to the May 2015 high of 2130, and a momentary one at that. In the other direction stood the prospect of at least a 40% of downside to 1300 (15X current shrinking earnings of $87/share) when the third great central bank bubble of this century inexorably bursts.

Anyway, the likelihood was that the machines would take it all back at the first chance. That was Wednesday.

The Rest…HERE

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