Friday, June 17, 2016

The Promise Of The Joker And The Fool

What do you call a country without a middle class?
Third World

The ALL IN bet that everyone else will get fucked over to make the quarter, while you profit...

The third and final implosion sequence is well underway:
Gap 'n Trap visualized. Shorts covered ahead of the Fed and then got locked out of the options market:

One week ago:
Did Options Traders Trim their Hedges Too Soon?
This week:
An Unprecedented Jump In The VIX


Global risk off. Check
JPY carry trade unwind. Check
Nightly China deval. Check
Oil implosion. Check
Failure at 2100 S&P. Check
Volume and volatility spike. Check
Tech rollover. Check
Breadth momentum falling. Check
Yield Collapse. Check

The "event" that caused the last two implosions
China Yuan Devaluation. Check.

Risk off. Check
Treasuries with JPY versus stocks:

Price momenum rollover deja vu of December. Check.

Consumer staples rollover. Check.

Oil rollover and backtest on high volume. Check.

Dumb beta rollover and backtest. Check.

More dumb beta rollover. Check.

New lies. Check.

Distribution (Institutional selling). Check.
Price / Volume

Equity overexposure. Check.
Equity Call/Put ratio:

Yield-seeking. Check.
Cash Balances

Junk bond rollover at lower high. Check.

World's largest stock by market cap
Third wave down at all degrees of trend. Check.

World's second largest stock by market cap
Ground and pound. Check.

Mega cap rollover. Check.

Overnight Gap risk. Check.