Saturday, October 31, 2015

Prepare for RPM Rapid Price Movement aka. Flash Crash 2.0

"Never put all of your eggs in one basket and then drop it from a 10 story building..."

When the large caps rolled over in August, the Flash Crash followed. This time they're even more overbought, for maximum downside momentum...
S&P Equal weight / Cap weighted

The stock market's momentum peaked with the Alibaba IPO one year ago. Alibaba and market momentum are tracking 1:1 lower...
S&P Price / Volume (red line)
Alibaba (blue line)

Add in the Microsoft, Facebook, Google, Moonshot

And don't forget iPhoney 11++

Counter-trend bounce in biotech. Check.

Shanghai surprise. Check
Dow with Shanghai Comp.