Bets on a mega-crash are at the lowest levels since right before the August Flash Crash. The January drop and bounce induced weak shorts to cover. When this short squeeze ends, sooner rather than later, there will be no buyers below the market...
The August Flash crash occurred on the Monday after OpEx which is tomorrow. I'm not saying it will happen in this timeframe, only a possibility. That said, a repeat is inevitable. Suffice to say my oil call is fugazi for this expiration unless it drops 30% by Monday...
Sky-diving without a parachute visualized...
20 day option skew:
Here we see on the S&P index itself - that January gap was higher on the index than on the SPY ETF, so that was Skynet's mission accomplished for today..."When you need that last little push over the cliff, where do you go...short-covering, exactly"
When the most crowded sector rolls over, shit breaks:
"Inevitable" visualized
When the most crowded sector rolls over, shit breaks:
"Inevitable" visualized
S&P 500 versus Treasury yields, Growth/value, Nasdaq, and carry trades:
This will get settled off-hours...
