The Market's Will Remain Irrational Longer Than You Can Remain...

Yeah... this market just runs on money...

Good morning:

Yesterday, I took about 15 minutes to walk viewers of my Morning Show through the traditional signs of a market top. I had 10 examples. Some of them worked very well before 2008. Some stopped working after 2020. But they all fit into the bigger vernacular of financial media pundits who say things like… “The last three times this happened, the markets cratered by x%…”

Keep in mind, some of these people also have to legally type into all of their PowerPoint decks that “Past Performance Does Not Guarantee Future Outcomes…”

For the record, these are the traditional signs of a market top (in a financial fishbowl without a constant source of money printing).

• Fed Balance Sheet Deceleration
  When the Fed slows or reverses its balance sheet growth (i.e., quantitative tightening), liquidity dries up. This weakens the main engine of post-2009 equity rallies. (Garrett’s Note: This doesn’t matter after COVID. Full stop.)

• Market Breadth Divergence
  Fewer stocks participate in the rally as ind…