Saturday, January 23, 2016

"The Dumb Money Is Gone"

It's taking a vacation in the Cayman Islands. Don't be surprised when it never comes back...

Two years of dumb money just got flushed down the toilet. Now the Idiocracy is going to learn the lesson they should have learned in 2008: that there wasn't only one Bernie Madoff on Wall Street...

Where the bodies are buried
S&P with price x volume (left side)

Bulls defended this level on heavy volume in October 2014. Then they spent over a year above the current level throwing money away. Then they defended this level again twice in August/September on massive volume. Yet, here they are again amid massive institutional selling and falling profits...fourth time lucky?

First line support is 25% lower, and in between is QE3 aka. printing money to buy stocks...the Idiocracy's secret to effortless wealth:



"The dumb money is gone"
Another Wall Street milking and bilking cycle has ended...
Rydex bull:bear asset allocation




No bid margin call visualized:
Oil shows us what happens when gamblers buy a top and then buy the dips on the way down. They end up puking it out at the bottom on colossal volume. And the capitulation phase only started last week. Short covering is the only thing keeping oil up now...Storage is maxed out, and the margin call has begun, so the price acceleration phase is beginning.

"How many tools want some more oil?"
Since Wednesday, the U.S. oil ETF lifted $1.26 on 200% average volume. Only forty more "6-day" rallies to break-even...




In other words, this week, two years of bullshit got flushed down the drain, so what did the circus clowns do? Doubled down, of course...

"Don't stop investing. Keep putting money in"








Most people just ignored the whole thing...