Wednesday, March 7, 2018

Third Wave PANIC

For this to be THE end-of-cycle selloff, a few criteria must be met:
Global blow-off top in risk. Check.
Flattening yield curve. Check.
Rising volume and volatility. Check.
Central Bank liquidity reduction. Check.
Tapped out consumer. Check.
Mass complacency/lack of hedging. Check.
Disintegrating breadth. Check.
Reckless speculation. Check.

Bonus risks:
Trade wars. Check.

Daneric is still using the same count...
The third wave (blue) within wave 1 (red) down in February, kicked off with an overnight gap. Like today...

Oil is tracking a similar breakdown fractal:

Tech is still bid...

The Tech/Treasury liquidity ratio is rolling over

There's been no sustained selling for six years, so this will make up for it...