Sufficient Time + Sufficient Denial = Inevitable Collapse

Mind The Gap and Crap

Five open gaps above the market (and many more below), means someone likely gets their ass handed to them on Monday (bulls or bears).

Because Skynet is getting a tad bit cranky about the serial gap and crap, hence either runs the stops above or look out below:

https://twitter.com/nanexllc

It's the end of another cycle - traders have been fully monetized:

Ding Ding Ding!!!

Ponzi Unwind: The Pain is Rising

ZH: March 8th, 2015

Dollar Funding Shortage Is Accelerating Similar to 2008

The divergence between Fed policy (tightening) and the policy of every other global central bank (easing) has caused another dollar (currency) shortage similar to Lehman. 

This is all in accordance with the Deflationary Hypothesis

According to the global deflation hypothesis, as elucidated by Prechter in "Conquer the Crash", extreme deflation will bring a contraction of the money supply as dollar liabilities exceed assets amid real-time asset "re-pricing". The resulting reach for dollar liquidity will cause a massive dollar rally further exacerbating the embedded solvency and liquidity issues.

The Globalized Ponzi Scheme is Short Dollars

In other words, the dollar lost 98% of its value since 1913 and its status as global reserve currency meant that it became the most shorted financial instrument on the planet. The deflationary crash will unwind that latent short position which is embedded not just in currency swap lines as explained by Zerohedge, but also in many other facets of Globalization, including commodity contracts which are priced in dollars and multinational profits which are repatriated in dollars. Most derivative contracts are implicitly short dollars as well. NYSE margin at an all time high: long stocks, short dollars.

$USD

RISK OFF

$USD (inverted) with stocks:

The Ponzi unwind is already well underway

Fracking: The Devil's Pitchfork

The continued reliance on fossil fuels was bad enough.

The false sense of energy independence, merely a Faux News hand job

The contamination of ground waters, an "inconvenience"

The mass proliferation of earthquakes, a "side effect"

And now, child sex trafficking:

"While it's an issue that's been around the United States for a while, it's become an "infestation" in the Bakken region after the oil boom"

"Sen. Heidi Heitkamp, D-N.D., agreed that trafficking is an "epidemic" in the region."

"We know that those children are the most likely to be victimized, the most likely to be sold into this lifestyle...the average age is 13"

Just another dumbfuck idea compliments of the Idiocracy

"They Don't Ring Your Bell At The Top"

Capitulation:

http://www.cnbc.com/id/102500760

"Marc Faber is well-known for his persistently bearish take on U.S. stocks—as his nickname, Dr. Doom, implies. But now he argues that large-cap American equities could actually be a great spot to keep one's money."

Extraordinary Delusions and the Madness of Crowds
Actually, Nouriel Roubini used to be "Dr. Doom", but he capitulated last year. 

CNBC: Nov. 13, 2014
Marc Faber even more bearish as stocks rise

CAPITULATION

The Japanification of Europe: The Truth Is Verboten

First this:

*TSIPRAS: GREECE CAN'T PRETEND ITS DEBT BURDEN IS SUSTAINABLE

The German response, via tabloid Bild, 

"There must be an end to this madness. Europe must not be made to look stupid."

Fast forward to this: 

*Did I say we "can't" pretend? Sorry, I meant we CAN pretend...

Mind The Widely Ignored Collapse. In Broad Daylight

"Stare deeply at the Dow"

The price action of the major averages is eerily reminiscent of this time last year - down January, up February, down early March, then straight up through July. It's tempting to think that we are seeing a repeat. Worse yet, based upon lamestream headlines, one would be led to believe that it's deja vu all over again. 

And then we remember that a few things have changed since last year:

Oil and commodities have collapsed

The dollar index has gained 25%

The Global Dow peaked last July and is at the same level it reached 15 months ago

The U.S. stock market's price:sales ratio hit an all time high valuation

Emerging Market currencies have been monkey hammered

24 global interest rate cuts year to date

Carry trades are getting monkey-hammered a la 1997

Deflation has spread globally

High Yield (Junk bonds) peaked in June

Gold is at a five year low

30 Year U.S. interest rates hit an all time low

The Baltic Dry Index is at an all time low

Weakest U.S. macro data since Lehman

Utilities, Energy, Construction, Industrial machinery sectors have all rolled over hard

Biotech and airlines went parabolic

Dow with price range of average stock. Not confirming the February top:

Distribution: Institutions selling to Etraders

Down Volume as Ratio of Total Volume

Bulk shipping costs

Via: http://www.zerohedge.com/

U.S. future deflation expectations. Visualized

30 Year Treasury Yields Since 1975:

Those believing the headline lies and bullshit have been sold down the river. Again.

We're All Japanese Now: Full Time Liars

By "Japanese" I mean an aging society that throws its own children under the bus, and otherwise lies to itself constantly while everything goes straight down the drain

Zero Percent Forever

Debt to GDP: 225% - Highest in world history.

If by some miracle the economy ever did recover, the rise in interest rates would implode the government budget

Balance of Trade

It's 1986 all over again

Nikkei "15 year high":

The main difference between the rest of the world and Japan is the infinitely shorter time to collapse. 

Ayn Rand-o-Nomics: Winner Took All

Ponzi wealth hits record high: Make-believe for billunaires

Let's see, step one: take all of the billunaire wealth and divide by the number of households, pretending that each family has an equal share. Then do the opposite for the debt, which IS in fact held by households and not by the ultra-wealthy. Add it all up and instead of arriving at negative household net worth, arrive at the highest fake net worth in U.S. history:

Printed Wealth

Next, ignore interest rates stuck at 0% for six years straight, and pretend that Central Banks are not the marginal buyer of all financial assets and literally the only thing keeping markets from collapsing. Pretend that liquidity is the same as solvency and assume that 1.2% yield on Spanish Ponzi Bonds is fair value. Assume that there is still a connection between asset valuations and the economy even though the economy is leading the stock market down, for the first time in history. 

#REF: Does not resolve:

Furthermore, pretend that all of the counter-parties backing the various pieces of paper are equally solvent under all financial conditions. Ignore the 50% drop in corporate profits that occurred in 2008 when GDP fell a mere 3%. And likewise assume that the Middle Class which has been systematically liquidated to bolster corporate profits for decades straight, will continue to buy overpriced branded merchandise from the same corporations in perpetuity, hence supporting current stock prices of the companies that laid everyone off.

An experiment in taking rational self-indulgence to its logical self-implosion.

Back At The Precipice

The deflation indicators are re-testing the Lehman lows:

All Commodities

Canadian dollar

Russian Stocks

U.S. inflation (deflation) expectations [TIP : TENS ratio]

Emerging Market Currencies

(Only Russian stocks are slightly above their recent low)

Gold: Is above its 2009 level, but at a five year (weekly) low:

Time for the Idiocracy to wake the fuck up