Friday, March 31, 2017

April Fools

"To every season, turn, turn, turn"

This week, more Imperial decrees were signed, the Trump trade had a deadcat bounce, and the Nasdaq diverged from every other index on the planet, driving to a new high...

Following Trump's drubbing last week, stoned gamblers turned their hopium towards a tax cut. 

"Tax reform"

"I want my tax cut !!!"




ZH: Watch Out For April Unwind

IF this momentum long-short were to unwind with violence, not only would popular longs get hit and popular shorts rip higher….but because the ‘longs’ are ‘high beta’ and the ‘shorts’ are ‘low beta,’ you’d get that ugly ‘leveraged’ market impact as well!

High beta / low beta ratio:

The unwinding Trump trade visualized. This week's deadcat bounce is circled: