Wednesday, May 25, 2016


Skynet has used low liquidity momentum ignition to keep the market pinned to all time highs. As we've only learned twice in the past year, liquidity, volatility, and momentum cut both ways...

Stock market liquidity peaked with the Alibaba IPO in September 2014. Subsequently, whenever Alibaba rolls over, the market rolls over and vice versa. Alibaba is tanking today due to an SEC investigation over irregular accounting. What else? Plan accordingly. 

Liquidity has left the building:
Price / volume (Red):

As long as oil doesn't roll over, this will all be fine

There's nothing odd about this whatsoever.
As it was in 2008, Financials were the last to rally...

Volatility compression is nothing just always ends badly...Did I say the market was back to the December breakdown level? I meant August...