Dubble Bubble is a brand of pink-colored bubblegum invented by Walter Diemer, an accountant at Philadelphia based Fleer Chewing Gum Company, in 1928.
This is a strange time in the markets. Probably at no time in the last century has a market been so dominated by one metric. In this case it is the extraordinary Federal Reserve QE policies to which has been added, transparency. What this gives us is a market where everyone knows the secret, and the secret is a black secret of macro stupidity.
So how does this play out, everyone knows the secret and everyone knows that everyone else knows the secret. Maybe the formula is (using EV as a variable measuring everyone and FS measuring FED secret) : ( EV * EV * FS = -56 %) . That is the swing-point low projected off the weekly September /28/2012 QE date, for the S&P 500 a macro projected low of 876.
In a sense the dubble bubble is based on the weekly dates of 9/28/12 and 10/18/13, dates when Fed transparency set up various levels of exuberance, the first being Bernanke’s QE infinity and the last date being the base upon which Yellen stressed all effort will be made to keep us all happy forever.
This could be a long topping process with the market action that started on March 7, 2014 dragging on into October. The US economy may never before have witnessed a meltdown based on weak consumption numbers like we are seeing. This week’s strong Alcoa numbers are just another marker in the production/consumption disconnect. Again I have to go back to what I have been saying for the past three years, until the consumption base is rebuilt, no amount of money going to the top is going to get the job done.
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