No one saw it ending. They were full Idiocracy, no half measures...
Following Federal Reserve Member Lael Brainard's speech today, the Fed will be in shut-the-fuck-up mode until next week's Fed meeting Sept. 21st. Until that happens, Wall Street gamblers will be parsing today's PhD gibberish for any hint from unfortunately-named Brainard, on whether or not she sees the economy floating back from China...
ZH: Sept. 12, 2016
"The markets have already spoken (meaning already financially tightened enough) to a point where the Fed ONCE AGAIN has to back away from their “hiking threat.” Back to “none and done,” which will likely merit a pretty violent rally in risk and reversal in rates."
Then again, according to the same bi-polar article, nothing lasts forever...
"Leveraged-carry strategies which for 99% of the year make money in this CB monpol bizarro world then see multiple years-worth of coupon smoked into nothing as what should be idiosyncratic “butterfly flapping its wings” events spills-over, correlations go to 1, and books are purged. "
Which is the long way of describing the circle of jerks, an eight year charade ending with final megaplosion:
All of this in the context of leveraged VIX short positions at record highs, compliments of the latest pension fund groupthink trade du jour...
Someone didn't learn from last August's crash (circled)...
VIX Futures leveraged shorts with VIX:
If I'm reading this right, we need one more fake rally anyways (in progress), to back-test the blue trend line...
