...amid extreme dislocation, and "Aw fuck, not this again"
The reach for all things fake aka. "Imagined Realities", went into manic overdrive this week. The Idiocracy was too busy playing with their new Ken doll, Donald Trump, to notice that everything was falling apart in real time.
So they bought the fucking collapse (BTFC):
S&P with average stock
These chasmic divergences have a tendency to always resolve to the downside:
The Nasdaq 100 is now negatively correlated with the average stock, in every timeframe.
The reach for "Imagined Realities" Visualized. As we learned in October 2008, this is a one-way trip:
Growth/value:
Casino and Conomy have now fully diverged.
Small caps and Semiconductors have also left the party (not shown).
Google: Full Skynet Retard. Had to get the Nasdaq to a new high, somehow.
Shock and Awe:
Global macro ready for the next leg down
(Canadian dollar, Russian stocks, All commodities, U.S. deflation ETF, EM currencies):
My S&P wave count is still intact (barely)
Prechter is still calling for new (S&P) highs in the index (black line) next week. If so, it would be the mother of all divergences.
S&P with percent of stocks above 200 DMA:
We've never seen this before. Either
Nasdaq 100 versus Semiconductors, now negatively correlated.
Oil and Oil stocks ready for collapse
The RISK OFF decline and subsequent short-covering rally was a global event. Markets are now 100% correlated.
CYNK'd:
ZH: July 18, 2015
Fake Europhoria Just Caused The Biggest VIX Drawdown in HISTORY
In other words, risks are just orders of magnitude higher than they've ever been in our lifetimes.
