Tuesday, September 10, 2019

There Is No Alternative (TINA) To Crash

The record global inflow into U.S. momentum stocks is now unwinding in record size. An "unexpected" reversal of fortune for Lehman week...

This is the binary stampede scenario that today's financial pundit used-car-salesmen have been assiduously ignoring. 

"This shift is unnerving to investors because momentum stocks, those defined by their large growth expectations relative to the broader market, have outperformed value names in recent years. A rotation away from these stocks could result in a downturn for the broader market."

This is the biggest two day rotation from growth to value since the election:

Momentum Tech is getting annihilated

The right shoulder is complete:

You never want to see Energy stocks, the smallest sector by market cap, "leading" the rally.

Because that means it's over:

Short-covering is the only thing holding up this market:

Any questions?

Momentum stocks are imploding just as the rest of the market is completing second wave retracements:
Semiconductors, FANG internets
High Beta Cyclicals (Banks, Retail, Industrials, Transports)
Rest of world stocks

And the Dow:

Look out below