The monkeys got hammered last week. Since then they've been buying more stocks for the next leg down. Faith in Central Banks is complete. Moral hazard is rampant i.e. the assumption that the Fed and ECB will step in and magically start buying "stocks" (junk bonds, sovereign bonds, municipal bonds, futures, options, currencies, oil, real estate, commodities), despite having no legal mandate or authority to do so. This could only end with trapped gamblers all believing they'll be bailed out again.
Last week's Flash Crash cracked the foundations, but this next leg down is going to break shit all over the place. There is ZERO margin of error now.
Here is another buying opportunity...
Global Dow
Bounced now stair-stepping lower again...
The Dow is back in 2013 aka. almost 2 years of gains lost, with the average stock lingering at Lehman levels, waiting for the next leg down...
Junk bonds:
Emerging Market currencies and bonds
The Thai Bhat single-handedly pole-axed global markets in 1997 but today the entire Emerging Market complex going into meltdown is a buying opportunity...
EM stocks and Oil stocks have bounced and are ready for the Elliot Straight Down Wave:
European carry trade is ready to break:
Aussie / Japan Yen Carry is in total free-fall, putting an ever stronger bid under Yen...
Here in the U.S., Momentum/Beta has been monkey hammered:
Canadian stocks back-tested the neckline...
Everything will break at the exact same time
