Extreme risks and extreme complacency abound...The frogs are fully boiled and ready to be served. Fully stewed in their own juices.
A blow-off in risk-seeking appetite
Growth / value ratio
As long as Netflix and its 187 P/E keep going up, this will continue indefinitely...
A Totally Clueless Fed / Non-existent economy...
Transports / Ratio of S&P
Walmart
U.S. Stocks: Massively weakened internals
Massively Weakened Trend
ADX Measures the strength of the trend
Junk Bonds Ignored
Europe / Greece Ignored
German stocks, bund yields
Emerging Markets Ignored
EM currencies with EM debt
Global carry trade unwind. Ignored.
Oil/Commodity collapse and Global growth at 10 year low (ex. 2009)
No hedging:
CBOE Put/call ratio
The complacency gap is chasmic:
Stocks versus options volatility: Per the (Ir)Rational Markets Hypothesis, Risk is always fully mis-priced at critical turning points
VIX original calculation
When living in a house packed full of dynamite, it's totally irrelevant where the first spark ignites
