Monday, June 15, 2015

Extreme Zombie Risk: Obliterated By "Imagined Realities"

Stoned zombies enjoy being serial ass raped by psychopaths. This is what it took me six years to realize. I apologize.

Cumulative systemic risk, aka. Zombie risk, is at an all time high right now. It's not managed, it's ignored and amplified. No one "owns" it, so it doesn't exist. It's the "socialized" cumulative side effect of Wall Street's asinine decisions, that gets conveniently forgotten about when the greed feedback loop is running full tilt. Per the Idiocratic assumption, all risks are uncorrelated, so each risk below must be viewed in total isolation:

Zombie Risk Visualized
Dow with average stock: Now at the third lower peak from 2008:
Correlation, lower pane: 30% Negative correlation between Dow and the average stock...

Got Greece?
German Dax (red) with German Bund Yields (Black):

U.S. junk bonds

Emerging Markets stocks with oil stocks

U.S. Stocks New 52 week Highs - New Lows

Money Flow: U.S. Stocks

Multiple closes beneath the trend line for the first time in 8 months

Late cycle, brewers breaking down
But, we'll pretend they're not...

OECD Carry Trades
Long Aussie, Norway, Kiwi
Short Euro, Swiss, Swedish Krona

Basically long Globalization, short deflation. We see how that's working out:

The Power of Imagined Realities
Zombie Etraders Are Fat and Happy, sitting on a powder keg at all time highs
Russell 2000

Two higher gaps. Skynet will do everything possible to fill those ASAP. 

Nevertheless...overnight risk is extreme...

The Zombies are playing Russian Roulette with an automatic