Wall Street’s beer-goggle induced complacency is not simply a matter of eager-beaver optimism or an excessively short-term focus on the meme of the day. It is exhibit #1, in fact, of the profound intellectual mendacity, sloth and downright corruption that has accompanied the Fed’s destructive regime of monetary central planning.
Needless to say, the latter has thoroughly falsified financial asset prices and obliterated the processes of honest price discovery. Accordingly, the daily financial narrative has become a dumbed-down derivative—meaning that it merely attaches fleeting headlines and transient talking points to whatever the day traders and robo-machines are doing at the moment.
Between the March 2009 bottom and the January 2018 peak, of course, they were essentially buying the dips—-about 50 of them with material dimension. The short-run narrative constantly changed—low interest rates, escape velocity ahead, synchronous global reflation, Goldilocks once more—-but the mechanic was always the same.
But all bubbles come to an end and this one, too, is now laboring heavily to stay aloft. So right now, the machines and day-traders are whip-sawing furiously between the 50-DMA (resistance) and 200-DMA (support) trend lines on the trading charts.