Friday, August 18, 2017

Going Down With The Ship Of Fools

But don't take my word for it...

"This means everything to them"

I'm counting on it.

This investment advisory firm put their own stock as the largest holding in their High Beta ETF. You can't make this shit up. 

"Then my trusted advisor told me to 'go all in'"

Eyes closed, one would think that this week in the casino was identical to last week - hard down on Thursday, Skynet stick save Friday. Were it not for the burnt offering of Steve Bannon, things may have turned out differently today. In the event significant technical damage was inflicted this week:

This week summarized:


The Nasdaq 100 carved out its third lower high, ending the week essentially unchanged, as risk got bought all over again:

The S&P 500 closed below the 50 dma for the second week in a row:

Were it not for the perpetual promise of imminent tax cuts, gamblers would have deserted the casino long ago. In the event they've decided to go down with the ship of fools:

This past week's round-trip monetized the last few hedges:

A few select bellwethers:


Skynet is running out of dumbfucks to play with...

Thursday, August 17, 2017

The Korean War Rally Is Over

So, "buy the fucking race riots"

"Named for the German airship that met its demise in a fiery crash 80 years ago, the appearance of this technical pattern sometimes portends a stock-market crash."

"The S&P hasn’t suffered five signals so tightly clustered since 2007, and 2000 prior to that"

"What, no war with Korea?"

"What stocks do I buy in a race riot?"

Trumptopia Is Imploding. Shocker.

Trump's support base is dwindling down to card-carrying KKK members. But don't take my word for it...

Here is a summary of Trump's accomplishments while in office, compliments of an ardent supporter:

Any questions?

Wednesday, August 16, 2017

"Another Smash Crash With A Twist Of Lemon. Please"

The definition of insanity is sticking your head up your own ass over and over again each time expecting a different result...

The casino is setting up identically to August 2015. The only problem for gamblers is that it's not 2015.

The week of August 20th was options expiration. 


The proximate catalyst for the 2015 flash crash was Yuan devaluation which was in fact preceded by EM currency rollover:

Low volatility was reversing

Speculation was rampant

The Energy sector was imploding

Breadth was extremely weak
This shows 2014 and 2015

Europe had rolled over

Japan had rolled over

The Fed was clueless
Albeit, that's nothing unique to 2015 or now mind you

The twist of course this time is the fact that it's the end of the cycle. Time to get out of the casino...

Tuesday, August 15, 2017

Eight Years A Central Bank Muppet

Zerohedge posits the relevant question: why did the muppets just buy the nuclear war dip? They offer the Wall Street axiom that the end of the world only comes once and you can't make any money off of it. However, the truth is that the hairless monkeys have been well trained for eight years to buy every dip with both hands, regardless of risk...

Hence, I'm not betting on the end of the world, I'm betting on the end of denialistic zombies who've perfected the art of knowing everything by knowing nothing.

"This is a six sigma permanent plateau"

"Hold this level until everything is ready for simultaneous collapse"

Here we see that the nature and character of this rally has changed in that second derivative volatility remains extremely elevated:

Small caps indicate why this is likely the case, as market breadth has deteriorated substantially.

Here small caps are shown with the S&P VIX:

The "world is saved by changing nothing" rally vis-a-vis fake reflation: