DrStool

Click to engorge.

I have to stretch to entertain myself these days.

Very good master Jimmah.

Not just dinosaurs, but all patterns.

Now remember boys and girls, in which direction do dinosaur patterns resolve?

Severe underbite

T-Rex Pattern update.

The widely accepted Wall Street conventional wisdom is that the market discounts the future. LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLO LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLO LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLO Think about it. Price is established at the margin right? I can agree to that piece of economic theory. Stock prices are set in individual trades. Who are the actors in those trades? Two guys sitting on the toilet with their phones in hand trading their robin hood accounts? A computer

Looks a little headandshouldery, but it snot.

Right. PE is a pure price measure. It is the theoretical price of $1 of theoretical earnings. It's really a sentiment measure, because the buyer of that dollar of earnings has no claim on it whatsoever. Stocks have no more value than bitcoin. Their worth to the owner is what someone will pay them for it when they want to sell it. Stock prices are figments of traders' imaginations based on how much cash they have in their pockets. And over the past dozen years that's been most heavily determined by how much cash the Fed wanted to give them.

Loaded with cash, investors want to stockpile absorbent paper, but there's a shortage of it.

The change in price level is a response to changes in liquidity that drives demand, and the supply of paper that absorbs it. If there's more money than there is absorbent paper, prices rise.

The market doesn't discount the future.

Testing the morning low.

Here we go.