Monday, October 12, 2015

Betting It All On The Super Crash

Then there were none




One by one sectors and entire asset classes have been falling for months and years now. All while the primary stock indices remained pinned to all time highs. The super crash in broad daylight has been ongoing since 2011. Dopium addicted gamblers have been conditioned to believe that bad news is always good. That "strategy" was always doomed to fail in the most spectacular way possible, it was only a question of when...

Oct. 11, 2015
"There's Nothing Solid Underneath Last Week's Gains
Only the capitalization-weighted indexes are showing a pulse after a brutal pummeling over the last two months. But much of the rest of the market is solidly in bear market territory with losses of 20% or more in anything remotely related to energy, commodities or basic industry."

"There are a lot of fund managers and pundits who have been 100% wrong about the market this year and are desperately praying for a huge fourth quarter rally to bail out their reputations (and pad their bonuses)."

Oct. 12, 2015
Fed still expecting to raise rates in 2015

 The last time market internals were at this level, the Fed was taking interest rates down from 5% to 0%:


Price / Volume (red line)


Since mid-August, growth has been weaker than value. Signalling recession...


Volatility is also signalling recession:



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