“All in all, the rally in developed market equities over the last three months has been clearly led by stocks with the shakiest fundamentals,”
Really, you're going to make me keep going...
All of the ingredients for a crash are in place, except one - trend reversal on the Nasdaq aka. junk stocks, which I discussed yesterday. I have identified what appear to be the key factors leading to vertical crash of the likes seen in August 2015 and January 2016:
On-balance volume (OBV) is a momentum indicator that uses volume flow to predict changes in stock price
This ~115 level on USDJPY appears to be all-critical to the global risk rally: