NASDAQ Breaks 3000, Ignores Doom and Gloom

The NASDAQ stock index surges above 3000 points despite horrible market fundamentals and a dire macroeconomic picture full of bad news

In what can be characterized as nothing short of complete insanity, the NASDAQ index has surged past the 3000 mark ignoring the horrible macroeconomic situation, including the European Sovereign Debt Crisis, forecasts of recession in a majority of global economies, imminent war in Iran, and the recent Greek debt default.

Clearly what we see is flaws in the artificial intelligence engines driving the parasitic high frequency trading robots that make up a majority of the rigged markets non-existent volume.

NASDAQ 3000 (in spite of)

We kissed Nasdaq 3000 this morning. Doom and Gloom abounds. The macro picture is still dire with lots of bad news – some of which you can only get on ZeroHedge! Consider the crazy news that Wyoming was looking to buy an aircraft carrier. Is this not Peak Doom? It is a sign.

I’ve argued before in the comment sections that the micro picture is improving but there is little reliable information to be had. How about that Russell 2000 index chart? These small cap companies have recovered from the bleak days of 2008 and may break out in an important way in the near future. This is confirmed by the action in the Nasdaq. The Nasdaq is not as small cap as the Russell and it is full of weighty leviathans that can cause the Naz to give us a false signal.

So here we are again at Nasdaq 3000. The 3000 level is psychologically important to me. I am dotcom. In ’95 I was lucky and got the second dream job of my life at a startup called “Netcom On-Line Services”. It was one of the first “internet service providers”. I got to live inside it, got to experience the run up, got to experience the startup thrill, and had to survive the hangover that came in 2001.

The Nasdaq collapsed from 5048 to 1114 and the days were dark for the techies and the geeks. Housing had yet to see its collapse and very few non-techies really understood what the techies were having to live with then. Now they get it!

That the Nasdaq might come back would never have occured to me. Many of us never expected to see Nasdaq 5k again, but if you had asked us about a more modest Nasdaq 3k perhaps most would have said “never live to see it”.

Here we are again at Nasdaq 3000. I had been watching the Russell and the Nasdaq make their climb. It was incredible to see something I never expected to see. I started looking for a Nasdaq 3000 hat. I couldn’t find one. Nothing on Ebay. It is a sign. The Nasdaq on-line shop was down. It has been down a long time. Nobody cares. It is a sign.

This week we watched the war at Dow 13k. Expect to see war here at Nasdaq 3k because these round numbers are pyschologically important to us humans. The HFT bots will play in the human turbulence.

So here we are again at Nasdaq 3000. The media coverage of this event will be nothing short of bizarre. ZeroHedge makes a lot of fun of the pundits trying to squeeze good news out of every piece of shrapnel that flys by. Here will be a story that most everyone will have to agree is some actual good news. It will be reluctant acceptance. It will be difficult acceptance. The info babes won’t have to lie – watch it in their faces.

I have been making my troubled way out of the doom mindset for year or so. The food stash is being eaten down and is not being replaced. I’ve been taking a look at small businesses and startups. It has been a long lost decade for the techies and its nice to see Nasdaq 3000.

Here we are again at Nasdaq 3000. You may not have lost everything in 2001 or 2002 like, for example, the Enron employees. Its possible that you may have only lost everything in 2005 when housing blew up. Its possible that you may have only lost everything in 2008 when banking/insurance blew up. You may not have a full decade in your emotional bunker like some. There are always uncounted blessings to be found.

If you are still in your emotional bunker come out and release a dove. Check out the micro landscape and ignore that macro. The Kondratiev Spring is here and don’t you miss it. The micro is coming back IN SPITE OF all the macro foolishness. The doom bubble can pop too. NASDAQ 3000!

Thanks ZeroHedge
Mark Hittinger

Source: Zero Hedge

Categories: ECONOMY, US NEWS

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