Wednesday, March 2, 2016

The Last Rotation Aka. "Point of No Return"

"At the end they took shelter in junk bonds..."

ZH: March 2, 2015
Sheeple Buy Most Junk Bonds Ever

Despite the fact that, on the same day...
MW: March 2, 2015
Stress In Energy Credit Markets Is At Record Levels

Bear market rallies give the false sense of hope that prevents capitulation. Central Banks controlled markets on the way up, now Social Mood is controlling them on the way down, amidst alternating manic and panic. In the meantime, Ponzi unwind continues in broad daylight aka. China reserve liquidation, oil liquidation etc.

In the Third and fastest wave down at all degrees of trend, they will be buying "cash", while all risk assets fall at the same time, having no marginal buyer...

Global Dow long-term

Global Dow short-term

NYSE Composite short-term:

In the first leg down (August) they rotated into Big Cap Tech. When that imploded in January, they bought defensive stocks and apparently junk bonds, neither of which are safe havens. In this next leg down, they will buy what's known as "cash"....