Thursday, March 17, 2016

A Delusion of Safety aka. Bull Trap

RISK OFF 
Small Cap / Consumer Staples ratio:




Stoned gamblers are hiding in the most overvalued and crowded sector of the market aka. recession stocks. Skynet is sucking the market dry, one sector at a time...

The August rally peaked with Financials. The December rally peaked with Internet stocks. This rally is peaking with recession stocks...

Bull Trap Visualized aka. delusion of safety:
P/E Consumer Staples



Waiting for the final break of the 200 day...



Financials broke in August...



Internet broke in December



Defensive stocks lead now...



XLP overthrow...



Growth / value ratio is not happy...



Yen carry is leaving the building...



As long as the wedge doesn't break, this will all be fine...




The biggest short-covering rally:
The most overbought market, in two decades...
McClellan Oscillator 20 dma: