STOCK MARKET OBLIVIOUS – NEGATIVE FED FUNDS FUTURES RATE COULD FORESHADOW REAL BAD THINGS $DIA $DJIA $AMZN $AAPL $GLD $GDX $SLV $NUGT $DUST $GBTC
The stock market’s party is getting louder on news that the U.S. and China are talking about trade.
And more Champagne is being poured even as the unemployment rate rose to 14.7% in April, as reported Friday. Why is the market seemingly celebrating the loss of jobs? For answers, please see “Why it’s not so crazy that stocks are rising even though 26 million people are out of work.”
Investors are too drunk to notice that the fed funds futures rate has gone negative. This contradicts the “V”-shape-economic-rebound elixir that the stock market is drunk on. Furthermore, it could foreshadow really bad things to come.