Tuesday, October 10, 2017

Chasing The Big Fat Ugly Bubble

There have been no meaninful casino pullbacks in 2017, so money managers are now "forced" to chase it vertical. If it crashes, a la October 1929, 1987, or 2008, who gives a fuck? It's not their money...




"price action is set up for an explosive move up"

"In traditional technical analysis, negative RSI divergence is bearish. But traditional technical analysis does not work as well as it used to...Note from the chart that the rally is on low volume. In traditional technical analysis, that is bearish"

There was an expectation that after Trump was inaugurated, the “hope” rally would fade. But that did not happen

money managers are going to be desperate to catch up to their benchmarks between now and the end of the year





The algorithms at The Arora Report are showing that a big part of this rally is driven by momo-crowd money flows

The momo crowd is not known for its strength in analysis. They simply buy stocks that are going up




The momo crowd is fickle and known to sell if momentum fades, causing big down drafts in the market. Please see “Six similarities between now and 1987, when the Dow plummeted 23% in one day.”






"The rule would require financial advisors, and more specifically brokers, to put your interests above their own when working with your retirement accounts"

















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