Sunday, June 26, 2016

Volatility MegaPlosion

CNBC: June 26, 2016
Friday Was The Largest Global Market Cap Loss In History

"Markets hemorrhaged more than $2 trillion on Friday, according to data from S&P Global, the worst on record."

The largest ever one day global sell-off got bought with both hands...

TRIN: Selling intensity was subdued...

As I also noted previously, the VIX (options volatility) was subdued because hedges were being monetized all day. Lastly I noted the a-b-c wave "island reversal" wave pattern in the over-owned low volatility stocks.

So put it all together, what do you get?

TRIN :5 min 

I think we all see where I'm going with this...

SPLV: Low Volatility Implosion Fund

Now all three (SPLV is inverted)...


But don't take my word for it...this came out Thursday...

According to a technical tool known as “Bollinger Bands,” the S&P 500 index has been as dead for as long, as it has been in 22 years. Basically, the market is like a coiled snake that is ready to strike...soon.

Although the charts don’t specify in which direction the breakout will occur, history suggests investors could start preparing to party like it’s 1995.