Thursday, April 27, 2017

The Age Of Competitive Self-Destruction

Now that the Trump trade is going in reverse, gamblers are free to focus on the last five four massively overowned Tech stocks still holding up the market...

Rule #1 of investing, don't put all of your eggs in one internet Tech basket, because you never know when it might smash crash:

Amazon is soaring after hours on news that its miniscule profit margins are still obliterating the rest of retail:

Collapse having been conflated with the MBA mega-dunce buzz word of this pathetic era aka. "disruption". Wait until they learn the hard way the true meaning of that word...

Amazon versus JC Penney

The VIX has only been this low one other time since 2007 i.e. in 2014 when global stocks and oil peaked and imploded:

Oil is clinging to the trend line

Large Banks

Fewer and fewer stocks holding up this fantasy

Equal weight / cap weight

The last time the Russell 2000 had this level of short-covering was in 2011 right before that crash

R2K Commitment of traders (red)