Monday, January 23, 2017

The Trump Dump Has Begun aka. Coiled Mega Crash

I just read this article pondering whether or not stocks are set up for a 2011 style waterfall plunge. The only indicator they use is momentum. I think we can do better, starting with the fact that this is not 2011...

First, the chart of the week and it's only Monday:

No, they don't see it coming this time...

Where was I...something about not being 2011:

Dow Relative Strength (Momentum):

Here is where it gets interesting:

The S&P is pounding 2260 on ever tighter fractals:

:15 minute

U.S. Markets Highs - lows 20 dma:

% of stocks above 200 dma:

The Nasdaq is desperately clinging to the upper trend line...

Google led the Nasdaq today, like it did at the last two tops...



The xlp / tlt ratio shows the rotation from dividend stocks back to bonds attending each crash:

The stock buyback ETF as a ratio of the S&P:

Stock buybacks fell 28% year over year in the fourth quarter...