1987 x 1997 x 2008 x 2010 x Epic Denial = Colossal Risk
The monkeys got hammered this week, amid a global currency crisis, which they took as a strong sign to buy more. Central Planning has assured them that major sell-offs can no longer happen. They are immune to reality.
The Idiocracy is swan diving into pavement, with no one to tell them otherwise...
A 1997-style currency crisis is the catalyst for global sell-off...
Emerging Market currencies and EM local debt:
A 1987 Waterfall collapse aka. Third wave down at all degrees of trend...
Epic short-covering bought a 58% retracement. Hedges have been lifted...
The count we've been tracking since the top in May...
Social Mood has turned down
Another generation of momentum Etraders has been wiped out...
Rydex asset allocation bull:bear...
The average Dow stock has been hammered back to pre-Lehman levels
The rally since 2012 is over. Speculators in China learned the hard way that non-stop government intervention does not preclude collapse.
The global economy is slowing rapidly.
Carry trades are reversing.
Nevetheless, it all got bought with both hands this week, as denial remains epic.
