Tuesday, January 19, 2016

Buy The Collapse: The Last Temptation of Wall Street

"Sell" and "Cash" are four letter words on Wall Street...

ZH: Jan. 19, 2016
The Market Refuses to Price In a Crash

Friends of Goldman Sachs out-of-the-money option bets on a mega-crash remain all time high, but there has been no actual at-the-money hedging against such an event. Betting on a collapse is not hedging, although that's what I tell my wife it is...

Because the monkeys have been well trained to buy every dip:

Beyond Lehman: LIQUIDATION MODE Visualized
Down volume/Total volume

Deja Vu: Shit is breaking
Nasdaq highs-lows (2 week moving average) with Russell Small Cap index:

The US Oil ETF hit a new low today and then bounced with stocks
Volume was 2x 90 day average but lower than 10 day average (10 minutes prior to close)

The Russell 2000 small cap got pounded today -1.35%, so once again, it was all Big Cap tech to eke out a 1 point gain:

Equal weight/cap weight ratio:

Today was another distribution day. Another failed 20 point rally to close up one point. Skynet is defending the August low at all costs. Each bounce weaker and of shorter duration. It may take an after-hours Blitzkrieg to jump the Maginot Line. At which point volatility will explode...

JPY (red) seems ready for Blitzkrieg:
:15 minute

Yen hourly: