Thursday, December 22, 2016

Occupy Hardest Landing: WINTER IS HERE

I pride myself on being the most unequivocally bearish blogger. If I read something more bearish, I immediately set about to amplify it 10x. Why? Because no one can possibly explain how violently and explosively eight years of continuous lying is going to end...

Something about the stoned masses piling into cyclical stocks at an all time high, with Wall Street unhedged ahead of year end, amid minimal liquidity, after four downside shocks in one year, leads me to believe that...

Global Financials

The gap between stocks and bonds created by the Trump tax cut, will close with extreme dislocation, amid a risk-off stampede out of stocks back to bonds:

Deja vu of last year, the Fed has duly monkey hammered Emerging Markets, with the assistance of Forrest trump

US 1 year yield with Emerging Market stocks:

The oil market is starting to converge back to reality relative to EM currency aka. "demand"

Internet stocks (Facebook, Amazon, Netflix, Google), all rolling over hard:

Breadth momentum (NYSE Oscillator):

China is in DEEP trouble, as their bond market, currency market, and now stock market are all going out of control at the same time:

China 10 year yield (red) with stocks:

The Russell / Dow ratio indicates small caps rolling over, at the end of the cycle, after a massive run:

Biotech: Exact same pattern as last December, only slightly ahead of schedule...

The Rest of the World of course rolled over at the exact same level as last year...

The average S&P stock is breaking down again...

Consumer cyclicals with the VIX show that complacency is rampant even as the key defensive sector trends lower