Fleckenstein: We Are Mired In A Depression – Here Is A Look At Bubble Insanity, Plus Gold & Miners

ΣΧΟΛΙΟ Ε : Μιά μικρή γεύση για την μεγάλη απάτη που λέγεται Χρηματιστήριο Νέας Υόρκης και τα χαρτιά μαϊμού τύπου TESLA την στιγμή που οι ΗΠΑ καταγράφουν 30.000.000 ανέργους.

Today Bill Fleckenstein said we are mired in a depression and took a look at the bubble insanity, plus gold and miners.
Beat-the-Number Fails to Attract Enough Players
April 30 (King World News) – Bill Fleckenstein:  The folks who play Wall Street’s maniacal game of beat-the-number were whipped into a frenzy last night, chasing many stocks obscenely higher, with the poster boy for that insanity being Tesla, which was roughly 10% higher on supposedly better numbers. (However, today it gave up all of its gain and closed 2% lower.)
TSLA: Follow the Bleeder
You don’t have to know much about accounting to see that a lot of what Tesla reports is a farce, and there are all sorts of other issues there as well. None of that matters for the moment, however. The combination of QE, passive investing, momentum-oriented algos, and a general lack of respect for risk (that still exists) has caused stock bulls to literally lose their minds. Thus, they continue to chase stocks to the upside while we are mired in a depression, with few prospects of dramatic improvement. (Today’s unemployment claims mean that roughly 30 million people are out of work.)

That’s not to say, as I noted the other day, that the data won’t get quite a bit better in perhaps a quarter or so, but it’s not going to be anything close to resembling a strong economy, let alone enough to justify current stock prices. But then again, readers by now all know that stock prices are where they are because bond prices are where they are, which is thanks to worldwide QE…

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In any case, despite the white-hot frenzy, the indices managed to take a little dip early on, but it wasn’t too long before the Nasdaq was back in the green and the losses had been trimmed in the S&P and Dow to about 0.5%. From there the indices sank for good, with the Dow/S&P losing about 1%.
PM Miners to Enter X Games
Away from stocks, fixed income was a little weaker, as was green paper, while the metals were really volatile. Preopening, they saw a line-job that caused silver to fall 4% and gold 1%. From there they struggled back such that, at one point, silver was only 1% lower compared to 0.5% for gold, although the nearby future was actually in the green. After that, though, they rolled over to close 3% and 2% lower, respectively.
The miners also saw wild volatility, whipping from red to green repeatedly. In fact, Agnico Eagle was indicated $2 lower, but wound up turning green and red several times before it turned lower and was hit pretty hard for the first time in about a month, as the GDX lost about 5%.

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