Shit happens to those who don't trust anyone who can be trusted. The post-2008 global "recovery" visualized...
The perfect mega-storm has paused for a moment after last week's totally ignored wake up call. The sheeple hit the snooze button so they could buy more stock under the assumption that the Fed will squander their last failed QE arrow buying their revenueless Biotech IPOs.
Now, a convergence of unprecedented factors is all coming together at the same time. Not the least of which is the infamous "Quant" saying that more convexity selling is imminent.
Other key factors are the ever-building Yen Carry unwind tracking 1:1 with the S&P, the burgeoning volatility short squeeze, institutions selling at the fastest rate ever, and the fact that real buyers have left the building. And contrary to QE fantasies, a Fed that is still in tightening mode, albeit only on paper. Then there's the matter of the frantic overnight selling coming out of "nowhere" i.e. Skynet liquidating.
That's just the U.S., the rest of the world is an even bigger disaster.
Last but not least, the average stock is clinging to Lehman levels, so another leg down from these levels is a kamikaze dive into pavement...
We've never seen anything this asinine before. But then again, I say that every day...
Brokerage / Financial Stocks peaked last, as they did right before Lehman:
The Yen (/dollar) hourly has the clearest waves
Complacency is rampant.
Because they bought the dip, panic and volatility explosion are inevitable. This will be one for all Ages.
And I'm not referring to minors.