The August Flash Crash wiped out five years of gains, a harbinger of what comes next:
At the start of last week, inter-market trends continued to suggest risk-on conditions were present. As the week progressed, however, some significant deterioration began to take place. Something looks off here.
momentum appears to have stalled.
Perhaps more troubling? Take a look below at the price ratio of the PowerShares S&P 500 High Beta Portfolio relative to the PowerShares S&P 500 Low Volatility Portfolio ETF SPLV, You want to see this ratio trend higher in a bull market
High Beta (black). "Low volatility" (red):
Fifth wave overthrow:
When the "low volatility" fund rolls over, the market tanks...