Sunday, February 21, 2016

"And Then A Black Swan Flew Up My Ass. Just Like Last Time..."

Barron's: Feb. 20, 2016:
"While there is little sign of a recession, plenty of technical indicators suggest that the stock market is heading sharply lower."

Stop me any time. The same publication that tells us markets are always right, doesn't believe in markets anymore.

2 + 2 = 5: These are the "technical" factors THEY list...
Treasury yields
Credit spreads
Market internals
Flight to defensive stocks
Growth stock obliteration
MSCI World ex-U.S. -26%
Gold rally
60% of S&P in bear market
Financial stocks
Global carry trades
Dow Transports (-30%) 
EM stocks - 37%

Barron's EconoDunces, the Fed, stoned zombies, CNBS

Choose carefully...

Down volume / total volume

Up volume / total volume:

Price / volume:

Price / volume:

Gamblers bought this rally because they thinks this is August all over again - a double bottom and then two month rally. Below shows internet stocks (red) with Transports (black). Note the difference from August. Back then, they both bottomed at the same time and then retested higher. Now, Transports are finishing a one month a-b-c rally and Internet stocks are dead cat bouncing...