All their eggs are in one basket of the most overbought and overowned tech stocks:
The BTFD team was back on the field today assisting Skynet, but even that wasn't enough. Today was the third opening down gap this week that got bought in the U.S. session. Suffice to say the chimps have been well trained by their Wall Street handlers. Because all warnings have been duly ignored. But don't take my word for it:
When stocks fall, investors typically pull money out of the market. But when U.S. equities suffered their worst two-day slump since May, some traders didn’t blink an eye.
Exchange-traded funds took in $78.5 billion in January, exceeding the previous monthly record by nearly 30 percent. ETFs saw close to $4 billion a day in inflows even on the stock market’s down days. This is unusual, especially for the highly liquid ETFs such as SPY, where flows usually correlate to the market"
In other words, the rest of the world has been sending an overnight message to the U.S. - and then U.S. gamblers buy it with both hands. The rise in realized volatility, reflects the assiduously ignored rise in realized volatility that has been transmitted overnight:
More to the point, China Tech, the gift that keeps on giving, is once again giving (below), and Europe (Stoxx600) broke key support (not shown). All ignored...
In addition to buying the stock dip, gamblers have also been buying record amounts of inverse volatility ETFs:
ZH: XIV Fund Flow Largest On Record
Be that as it may, the XIV failed to take back its 50 day moving average despite yeoman effort:
What I'm trying to say, looking above and below, is that ALL of the tax cut bubbles are simultaneously imploding...
These zombies don't know how to panic, I'll say that much.
Chalk it up to the "HODL" mantra - hold on until buried deep...
"Tax Cut???"
Even as gamblers remain massively complacent:
There is one bubble left - which is the relentless bid for all things Mega Cap Tech.
Yet we know from prior experience eventually even that one rolls over:
