Friday, September 25, 2015

The Stock Market Is Falling Apart Piece By Piece

The S&P 500 fell 110 points in one week from the post-FOMC meeting last Thursday to yesterday's low i.e. -5.5% in one week. The market is now carving out a three wave retracement of that move.

Almost ALL of the movement in the U.S. markets this past month came off-hours in the futures market. Currency volatility is now being transmitted directly to stocks. 

Goldman Skynet has lost control of the markets. 

I just read this load of hopium-based bullshit saying that stock investors are the most bearish in 15 years, which is "bullish". Apparently, stock investors can be bullish throughout an entire rally and that's bullish, but when they finally flip to bearish, that's bullish too? Holy fuck. When does bad news ever become bad news in hopium-land?

It's a tale of two markets: The reality is that there has never EVER been as much single stock risk as there is today, because the market cap weighted indices are hiding the destruction occurring behind the scenes...

The last time the NYSE composite was this obliterated, the overall market was down -20% in 2011 and -30% in 2008:
NYSE Composite: % of stocks above 200 day moving average:

Therefore, single stock hedging has risen commensurately:
Equity Put/Call:

Whereas, index hedging is non-existent...