Tuesday, November 1, 2016

"No Zombie Saw That Coming"

This wasn't supposed to happen - "the best 24 hours of the year" are turning into an unhedged bloodbath. All because gamblers covered their shorts ahead of the Fed and hence ahead of the election. Last night's Bank of Japan gong show served to weaken USDJPY, which portends badly for tomorrow. Because regardless of what the Fed decides, the dollar and financials are already priced for a rate hike, meaning carry trades and financials will get monkey hammered after the decision. Which, as usual, is not priced in...

Speaking of which:

In other words, gamblers were totally unprepared for Brexit and now they're even more totally unprepared for Trump...

"What, me worry?"

TRIN: Selling intensity:

Weekly Momentum:

The market has only crashed five times from this level...2008, 2010, 2011, August 2015, January 2016...

Oil with junk bonds



USDJPY aka. Overnight Risk