The Last Casino: The Hotel Californication

The entire world is selling risk except the U.S. The U.S. stock market is the only major market anywhere near all time highs. Therefore, contrary to popular belief, overnight risk is not "bullish". As usual an EXTREME risk factor is the latest delusional reason to buy the dip...

But first, some perspective:
% Performance S&P 500 versus the Rest of the World since the 2007 peak. 

There's a 70% performance gap between the U.S. and the rest of the world:
The S&P is up 42%, the rest of the world is down -32%:

Remember this from April? U.S. stocks are also 70% overvalued relative to GDP:

I'll be honest, I can't tell if overnight risk pertains to Yen, Yuan, WTI, Asian stocks, European Stocks, Global Financials or all of the above. Because it absolutely makes no difference...

The recent acknowledgement that risk is imported overnight was the first step towards reality, however, the conclusion that it's bullish from a "contrarian" standpoint was as usual the exact opposite of the truth...

"Why foreign investors in U.S. stocks are, as a group, a more reliable contrarian indicator than U.S.-based investors"

Foreign investors are not "selling U.S. stocks", they're selling "RISK". Because as it was in 2008, they know something U.S. gamblers don't know. YET...

"What do they know?"
This shows S&P downside gaps 90 dma.