LEI Continues to Collapse Equities Don't Care

Nvidia Earnings Tomorrow

This morning gave us further confirmation that the general economy is suffering the effects of higher interest rates. It also confirmed the fact that the equity markets do not care about fundamentals, especially alleged economic well being indicators. Here is the chart from Zerohedge:

We don’t need to beat the drum any further we have commented on the fact that the equity markets are the top 10% bank accounts. They are longer term buy and hold fiat expansion regime mechanisms. Basically equity and real estate assets are determined more so from central bank money printing and asset purchases and less so on economic fundamentals.

We sent a bunch of charts out with this mornings letter but let’s focus on this one right here. This is the SP500 December futures and our expected run to 5000 a juicy 10% run up before year end:

Seriously, what would be the catalyst from stopping this?

Rates…don’t matter

Economic fundamentals…don’t matter

War…doesn’t matter

Honestly the only thing that matters is the fact that there are still $3 Trillion in reserves, that the RRp program is still $950 Bn. Seriously any market correction is just weak hands selling and momentum algos just trying to buy things cheaper, in reality there are no organic sellers. We don’t make the rules, rather we are steady observers of the chaos and for now, nobody wants to sell.