From now on I will no longer discuss fundamentals as they pertain to the casino, since there are none to discuss...
We're waiting for a fifth wave (counter-trend) rally overthrow on high volume. In the meantime, short-covering on minimal volume is the order of the day ahead of the ECB on Thursday. Bears are being driven to extinction by momentum algos...
Bulls are pressing their luck, on the prospect of a "new high" in the S&P, which if it were to occur would be accompanied by unprecedented divergences...
Divergences...
Starting with the fact that the market is now fully cleaved from fundamentals and has devolved into a momentum casino. All major sectors have peaked and Tech is lagging. Most-shorted stocks are "leading" from behind as short-covering and capitulation is the order of the day. As ZH notes, most-shorted stocks are seeing their largest move since 1933 - a hodge podge of late stage junk is now "leading the market"...
This is the closest index I have that replicates the most-shorted index: S&P high beta:
This hasn't stopped the runaway train. Yet.
Nor has this...
The Buffett diversified portfolio looks to be putting in a top...
Transports are having trouble getting past the breakdown line...
Pre-market we learn that Goldman Sachs profit was down -60% ($1.1 billion versus, $2.84 billion)
Financials well below the 52 week high:
Financials well below the 52 week high:
Oil was bid yesterday due to the Kuwait strike which trumped the Doha fiasco...futures expiration is tomorrow...
Breadth momentum is not confirming a new high...
Price / volume
The Nasdaq is lagging badly, overnight IBM and Netflix both shit on their quarter...so the count is unchanged:
These gaps have persisted longer than I expected, but they will get filled...likely another gap up today...
Volatility is biding its time...
