Wednesday, February 1, 2017

Reality Has Never Been Wrong. Not Even Once.

For the past eight years we've been faced with the choice to accept the fact that the consumption oriented lifestyle is a dead end. The upside of ignoring that truth is eight years of extended 'vacation'. The downside is financial obliteration with the full assistance from proven serial psychopaths... 

Back in the day, I got shellacked during Y2K, gambling on the long side. I made it all back and then got monkey hammered by 9/11. I made that all back and got final pole axed in 2002 in the final leg down. Just like now, everyone thought that a new bull market was underway post-9/11...

This chart reminded me of my three stage introduction to Wall Street serial pump and dumps. This is the VIX/VXO ratio and in a nutshell it indicates when the largest caps are weakening relative to the rest of the market. As it was back then, the largest caps are now extremely weak:

Apple looks to have finished wave 2 retracement today...






JP Morgan