Friday, June 17, 2016

Global Financial Hotel Californication

This was the week that stoned sheeple went ALL IN on global RISK OFF...

For anyone who wasn't too busy playing fake-believe, this was the most significant week for global financial risk since October 2008. And of course it was all bought with both hands...

Record Global Deflation collapsed global interest rates to new 500 year lows

The Fed capitulated and basically admitted that rate hikes are off the table indefinitely

Global stocks ex-U.S. imploded with German DAX and Japanese Nikkei testing their 200 week moving average

Global Financials were monkey hammered across the board. U.S. Financials broke their 200 day moving average

European and Japanese banks broke to new all time lows

USDJPY broke its 200 week moving average for the first time since 2007

China devalued the Yuan to the lowest level in five years

Bitcoin exploded to a two year high on massive volume

U.S. stock volume and volatility exploded, amid record volatility short interest

Oil rolled over hard, breaking its rising wedge in place since February 11th

Small Caps and Consumer staples rolled over in synch deja vu of 2008

Global Dow entered 3rd wave down at all degrees of trend

Nasdaq "FANG" stocks rolled over as Microsoft's acquisition of LinkedIn signalled a top in internet over-valuations

The Nasdaq resumed Third wave down, breaking the 200 dma

Transports broke their 200 dma

Mega cap stocks were weak across the board

"Dumb beta"/low volatility stocks rolled over, backtested and rolled over again

The U.S. Liecovery is over...

Global Risk Off


Deflation with Oil:

3x leveraged oil

Nikkei with JGB yields

European Stocks

German Dax with 200 week moving average

Bitcoin with China Yuan:

Aussie / JPY

Nasdaq 3rd wave

U.S. Financials

Asset Managers

Small caps with Consumer staples

Goldman Sachs


Deutsche Bank

Dumb Beta

More dumb beta

Mega Caps



Chart of the week:
"Surprise Ponzi Schemers, you're done"
S&P Gaps with World ex-U.S.: