Saturday, January 23, 2016

Buy The Last Dip: Then There Were None

There's no marginal buyer of over-priced junk, once the momentum ends and the shorts have covered...

You know you're in a bear market when...volatility is trending higher:

VIX inverted (2 week moving average)

The noose is tight:

All because of CasinoConomy aka. sector bifurcation on a level never before seen in the stock market...

Weekly highs-lows (Nasdaq)
We haven't seen this since...

The Etraders are leaving the casino
Brokers got hammered this week because they reported that daily average trades are now falling...

No one can beat the market aka. Skynet, when the average stock is falling apart...exactly as it was in 2008, the August Flash Crash was a failed bottom that didn't hold. Now the market will find the real bottom...

"No blind man saw that coming"
NYSE % above 200 dma:

The fantasy of the day...the U.S. is decoupled from China, Emerging Markets, and Commodities. Goldman Sachs' chief investment officer was just saying this on Charlie Rose on Thursday...there's no correlation. He believed all of it.

"The financial pre-eminence gap between the U.S. and the rest of the world is growing"
"U.S. investors are focusing on China too much"

Chinese stocks with S&P:

Because the rest of the world can fall apart, but not us...
Global Dow (includes U.S.):

One to go...Team Groupthink:

TRIN: aka. short covering and buying the dip at a two year low:

"We have Central Banks, we don't need to hedge"
No, this is not 2011...
Index put/call: