Tuesday, September 13, 2016

Lehman+Rise of The Machines = Smash Crash

Nothing was learned from 2008...

On the 8th anniversary of Lehman, global markets are in final liquidation mode and the machines are fully out of control...






This week is the eighth anniversary of the Lehman Bankruptcy (Sept. 15, 2008). So what has changed? Eight years of global stimulus has been squandered to levitate the casino while the economy disintegrated under the relentless forces of Globalized capitalism. In other words today's forward P/E multiples -  believed by groupthink dullards across Wall Street - have less veracity than a fucking Magic 8 Ball prediction...

What else changed? The machines fully took over the casino, leaving a massively leveraged illusion wholly exposed to the whims of momentum algos trading on millisecond boundaries. 

In other words, what comes next will be a massively turbocharged version of the Lehman meltdown.

And the final liquidation is well underway...

TRIN: Selling intensity




Since the NYSE went public in 2005, it has vastly expanded the massively profitable HFT Co-location service which allows the machines to front-run the humans...



As long as there's not another Flash Crash, this will all be fine...because a Flash Crash while the market is in liquidation mode, is game over, man...