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US stocks have fallen. Again. And they can’t get up. Bidenomics?

Written By | May 12, 2022
US stocks have fallen, Bidenomics, Wall Street head fake, Dow stocks decline again, stocks puke, ZeroHedge, Biden't capital gains taxRocket Companies, Quicken, tech shares, Redditors, short sellers, market crash, Wuhan coronavirus, stock portfolio, stock portfolios

Wile E. Coyote’s portfolio is doing almost as bad as everyone else’s. (Warner Bros classic cartoon image, YouTube screen capture. Fair use, reimagined for satirical purposes.)

WASHINGTON – Let me reinforce today’s stock market headline. US stocks have fallen. Again. Wednesday trading action followed Tuesday’s playbook. Rally early and fairly impressively. Fade that rally around lunchtime. And then tank market averages near the 4 p.m. ET closing bell on Wall Street. Is Bidenomics to blame?

Nahhh. It’s not Bidenomics. It couldn’t be. The current White House Junta Administration keeps telling us that Vladimir Putin is behind all America’s economic sturm und drang. So that’s all we know on earth and all we need to know, right?

Worse, the effects of Putin’s evil genius manifested themselves again today. Just look at this closing Wednesday market headline via CNBC:

Nasdaq drops 3%, Dow loses 300 points following hot inflation report

Without exactly blaming Putin – or any of the usual suspects we’re apparently not allowed to name – CNBC provides some of today’s nasty market details.

“Stocks fell on Wednesday, stepping back earlier gains as investors continued to digest the latest U.S. inflation data.

“The Nasdaq Composite fell 3%, the S&P 500 slipped 1.4% and the Dow Jones Industrial Average traded down 260 points or 0.8%.

“‘Everyone wants energy and food and labor costs to all come down, but at the same time, our mechanism for doing that is to increase interest rates,’ said Aviva Investors’ Susan Schmidt. ‘You’re working at countermeasures and it’s worrisome for investors because they’re trying to figure out how this impacts business overall and that’s why I think you’ve seen such whipsaw action in the major indices.’”

CNBC continues its description of Wednesday’s Bidenomics Tale of Woe

“Tech shares struggled on Wednesday, tempering gains for the Nasdaq. Meta Platforms [aka, Facebook, NASDAQ: FB] and Netflix [NASDAQ: NFLX] each fell around 4% while Microsoft [NASDAQ: MSFT] dipped 2% as investors continued their movement out of growth areas. Information technology and consumer discretionary sectors fell more than 3%, dragging down the S&P 500.

“Meanwhile, Visa [NYSE: V] and Merck [NYSE: MRK] were the best-performing stocks in the Dow. While most sectors dipped into negative territory, energy rose about 1.4%. Utilities and materials also fought to stay positive.”

Ahh, but here’s the money graf:

April’s consumer price index showed an 8.3% jump, higher than the 8.1% increase expected by economists polled by Dow Jones. The price surge remained near the 40-year high pace of 8.5% seen in March.”

Why US stocks have fallen. Bidenomics? (Oops. No Disinformation Allowed!)

Taking out the “volatile” food and fuel components brings the rate of inflation down to roughly 6.2%. But unless you’re one of those rare individuals that consume neither food nor fossil fuel, that’s cold comfort indeed. Plus, weren’t we aiming at around a 2% annual inflation rate? Like we had back in a previous but recent administration? The one that the Biden Ministry of Truth would likely prefer we not name, because that’s likely Disinformation?

In all honesty, no matter what we’ve done with our own portfolios, they consistently show red ink. This seems to be a feature, not a bug, of this junta’s administration’s economic track record in 2022. Breathing in the fumes of the previous administration’s dynamic economic policies, markets remained mostly bullish in 2021. But now, the sheer socialist lunacy of the current junta’s administration’s fatal socio-economic blunders, including their moronic shut-down of the previous crew’s brilliant, cost-reducing energy policies has rippled throughout the economy. Just like the dark, mournful tones of Chopin’s famous Funeral March.

Also Read: Review: It took 2000 mules to install one dumbass in the White House

But, lest we forget, this is all Putin’s fault.

While our portfolios continue to benefit from the fairly large holdings of bonds, baby bonds and preferred stocks we acquired during the severe markdowns caused by the 2014 Taper Tantrum and the 2020 WuFlu panic and subsequent governmental overreaction, even these investments have fallen from their recent highs in 2022.

Currently, stocks in all sectors continue to get creamed, as they did again today. And techs, which as we all know, always go up, recently have begun to show clear signs that, at least for now, maybe they always go down, too. As a result, we’ve severely reduced our portfolio size again and again. And every time we try to “buy the dip,” which worked brilliantly since circa March of 2009, that tactic fails. Again and again.

Worse, the decline is likely not over by a long shot, even though we may benefit from the occasional relief rally. Problem is, every time we get one of these, it seems that everyone, from hedge fund managers to home gamers, breathes a sigh of relief and dumps even more stocks at slightly higher prices, leading to successive – and worse – downturns. Rinse, repeat.

In a Tuesday report, the Twin Tylers of ZeroHedge noted the following:

“This morning, Goldman’s trading desk…, in an early note from trader Matthew Fleury… writes that… ‘This is the top of book depth of S&P futures divided by 1mo ATM vol. It is flashing red. The set up for an equity market crash is as high as I have seen it.’

I’ve snipped the technical detail in this comment. (I can barely parse it out myself.) But Fleury refers to a complex chart that’s setting off serious alarm bells at Goldman, whose analysts most investors generally regard as the best and most accurate. (Though not necessarily infallible.) And Fleury’s Fear Factor is not a good sign.

Neither was Tuesday’s McClellan Oscillator chart, provided courtesy of the public pages of the invaluable, a technical service to which I subscribe, BTW. (No commission earned.) Updated every evening after the market’s close, this chart appeared Tuesday evening. Looking at the bottom right of this chart, we can see the jagged recent action in stocks, as charted by the Oscillator’s calculations which, with great accuracy, indicate extremes of bullishness and bearishness in markets in general.

US stocks have fallen, Bidenomics

McClellan Oscillator, COB Tuesday, May 10, 2022. About as inconclusive as it gets. Chart courtesy

A nasty and inconclusive McClellan Oscillator chart adds to the confusion about why US stocks have fallen

Bearish conditions are present when the chart dips below the zero line on the X-axis. An extremely low reading, such as we saw earlier this year, generally leads to at least an impressive dead cat bounce in stocks. Contrariwise, an extremely bullish high reading ABOVE the X-axis zero line indicates a bullish top that tends to trigger a bearish overreaction.

Problem is, at least as of Tuesday evening, the Oscillator has refused to decline to an extremely bearish climax. The current chart is bearish, all right, but not bearish enough to trigger a reasonably sustainable rally. That’s likely an indication that investors are using every apparent rally as an opportunity to dump more of their holdings.

This means the selling is not yet done. So any “dip buying” continues to end with yet another bearish loss for the bulls.

Fact is, the Great Trump Rally (can we still call it that?) is now officially dead. So, for now at least, investors should heed that grim sign Dante tells us is posted above the Gates of Hell:


Sure felt like it again today. Right now, cash is king. Let’s keep raising it. Eventually, this, too, shall pass. And if we keep most of our powder dry, at some point we’ll find considerable high quality market merchandise will once again, at long last, turn out to be priced to sell once again.

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Terry Ponick

Biographical Note: Dateline Award-winning music and theater critic for The Connection Newspapers and the Reston-Fairfax Times, Terry was the music critic for the Washington Times print edition (1994-2010) and online Communities (2010-2014). Since 2014, he has been the Senior Business and Entertainment Editor for Communities Digital News (CDN). A former stockbroker and a writer and editor with many interests, he served as editor under contract from the White House Office of Science and Technology Policy (OSTP) and continues to write on science and business topics. He is a graduate of Georgetown University (BA, MA) and the University of South Carolina where he was awarded a Ph.D. in English and American Literature and co-founded one of the earliest Writing Labs in the country. Twitter: @terryp17