Saturday, June 3, 2017

Black Swan Diving Into Pavement

It appears that Global Social Mood peaked this week...

In other words, human history's biggest bubble, is getting set to implode...Central Banksters can get gamblers into risk, they just can't get them out...

If it's one thing this era proved definitively, is that there is no such thing as a "Plunge Protection Team". What there is instead are Central Banks willing to provide unlimited monetary dopium for gambling purposes. Some people like to conflate these two concepts as the same thing. However, as we learned via the Shanghai Composite, sometimes the "floor" provided by unlimited liquidity can be some 60% below the current level. In the event, the Chinese government had to ban short-selling, ban institutional selling and halt trading for days at a time. Tens of thousands of gamblers were wiped out. If that's plunge protection, then there's a disagreement on terminology... 

Here we see in this current era, via the micro caps, that eight years of free money has incentivized gamblers to now try high altitude Black Swan diving into recession:

Micro cap index:

Below we see the most speculative parts of the market all peaking around the same time. Again.

Biotechs peaked two years ago when they were the hot sector du jour. No surprise IPOs peaked at that time as well. Now IPOs are peaking with internet stocks while Biotech limps back to the Flash crash level from August 2015 to have another go at it...

The BitCoin Trust trades at a 130% premium to Bitcoin as of yesterday's close...

Oil and Gas stocks puked all over Trump's Paris accord rejection, so now gamblers are seeking the safety of Netflix and Go Daddy...

U.S. Oil ETF (:30 minute scale):

One month of bullshit later and it's back to the same jumping off point for oil:

Ask Google: which tech stocks peaked last in 2007?


Lockheed Martin


German Dax

London FTSE

Korean Kospi

Bombay Sensex

U.S. Dow:
In the broadening top formation five minor reversals are followed by a substantial decline.

It is a common saying that smart money is out of market in such formation and market is out of control. In its formation, most of the selling is completed in the early stage by big players and the participation is from general public in the later stage.