THE BIG LONG: RISK IS BINARY

This week, imploding hedge funds (force unwinding) drove the biggest short-covering rally in a year as the most shorted junk got moonlaunched. Skynet completed the ground and pound by crushing volatility into OpEx (today). Stocks decoupled from Yen carry, Treasury yields, and oil as weak bears capitulated. RISKS HAVE NEVER BEEN HIGHER. GAMBLERS ARE ALL IN:

This is the Index Call/Put ratio. What's wrong with this picture?

This is the inverse, aka. put/call ratio, long-term. 2011 is a reference point for a meaningful bottom. 2007 is a reference point for preparation ahead of time aka. "The Big Short":

Banks had a good bounce this week, just as they did in 2008...

There were not two short-covering rallies, there was only one which started in January. The S&P made a lower low in February due to the Financials which are imploding. I think I mentioned that already.

As viewed via Transports which have led since January (+11%). Now we know why the call/put ratio (top chart) rose in a straight line since January:

Transports long-term. We forgot the ending again...

As long as Special K doesn't roll over, this will all be fine...

A cereal company with a 73 P/E ratio. 4x the market P/E ratio. "Business as usual" in the Idiocracy. 

https://ycharts.com/companies/K/pe_ratio