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:
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: