It seems so long ago that we saw multi-month high Hindenburg Omens. Just last week:
"The Hindenburg Omen is a technical indicator that was designed to signal the increased probability of a stock market crash. It compares the percentage of new 52-week highs and lows to a predetermined reference percentage to predict the increasing likelihood of a market crash."
Here is where it gets interesting:
A 10 day moving average of NYSE Hindenburg Omens.
Here we see a very clear head and shoulders top. We also see that on the left shoulder, the H.O. signal peaked prior to the top, then there was a melt-up rally, a lower peak in the H.O. signal and then VIXPlosion 1.0:
The NYSE Composite has finally returned to the left shoulder peak, this week:
For whatever algorithmic window dressing reason, ALL of the major sell-offs in the past two years began just after month end. In addition, as we see now, Emerging Markets rolled over first:
The largest IPO of the year is over, so this can all end now. After all, Hong Kong is in the worst recession in a decade, and China Financial warning signs are EVERYWHERE:
From a social mood perspective, it's difficult to discern a clear pattern when markets are so heavily manipulated by central banks and window dressing algos.
Nevertheless, one appeared this week compliments of revenueless Biotech stocks. Clinical trial stocks are the riskiest companies in the entire market. Most don't even have sales yet.
Now going parabolic:
Financial Asset Managers
The top performing IPOs of the past year, each appeared at the three higher highs in the S&P:
Major indications of global risk are necessarily being ignored, as always
Latin American currencies in particular are getting hammered
"Everyone is online"
In summary, it was the ideal week for a Terminal Idiocracy to go ALL IN:
"You'll never get a better buying opportunity than this"
