Sunday, July 10, 2016

The Last Con Job

Recession stocks in late stage melt-up are the only thing holding up the last casino...

The S&P 500 is the only market still at all time highs. And within the S&P 500, "smart beta" aka. yield stocks are the only ones making new all time highs (and Amazon). Because we all know that 4x overvalued recession stocks are safe havens...

As we see, the last two times the market was led by other sectors and when they rolled over, the market rolled over. This time, yield is pulling the market higher. Because it is the market...

Breadth is lagging. Again.

Price momentum:

World Ex-U.S.


Realized volatility


Price / volume

Chinese Yuan

Oil with Exxon

Short-covering. I mean Financials "rallying"

Mind the gaps
The downside Brexit gap and the June 8th downside gap got filled this week. All gaps are below the market...