Friday, September 18, 2015

The Perfect Shit Storm

The modus operandi of the Idiocracy is to look at every issue in total isolation and pretend that all risks are uncorrelated, until a Black Swan flies up their ass...

An artificially levitated stock market with an 8 month momentum divergence.

China and Emerging Markets in meltdown mode

Global GDP growth falling

Commodity collapse

Only the third global carry trade unwind in 20 years

A peak in every risk market in the entire world

Multi-year breadth divergences

Minimal liquidity/De Facto Flash Crash

Massive selling on par with every other stock market "correction" of between -17% and -55%

Consumer sentiment peaked 8 months prior

Collapsing corporate profits and revenue

A totally bogus debt-sponsored "recovery"

Interest rates still at 0%

A clueless Fed considering raising interest rates at the end of the fake expansion

History's largest IPO lockup expiration (Alibaba. Sept. 19)

Mass complacency