Monday, April 17, 2017

Collapse Is a Crowded Trade

The stocks that were down the most last week, were up the most today. And Oil which led last week, was down today. All because someone pressed their bets on the implosion trade...


Yes, Wells Fargo and the other large banks were up the most today...

Backtesting the support line:

Then Amazon

But the real blood in the water is in retail where to the surprise of EconoDunces everywhere, robots are not doing enough shopping:

"In the first quarter of this year, nine retailers filed for Chapter 11 bankruptcy protection, matching the number of filings for all of 2016 and tracking for the highest annual figure since 2009."


Biotech led short-covering last week...

And Transports are getting shellacked, due to airline profits which are down -50% year over year, not helped by dragging customers off of airplanes...

And trucking:

Energy stocks (red) are not pulling their weight anymore, as gamblers are increasingly reluctant to make leveraged bets on Oil...

The Nasdaq with realized volatility is a coiled spring:

So once again it will be up to dish soap and diapers:

Consumer staples % bullish: