Friday, December 19, 2014

BTFATH: Set-up for the HALO Crash

Don't think it can happen? That is of course the whole point.
By all logic, facts, and reason, this debt-sponsored fabrication should have collapsed a long time ago. Only Russian PhD programmers can explain mathematically how this all stays together minute by minute. So of course, when it didn't collapse on time, that gave the masses the plausible deniability they so desperately needed to believe in the indefinite impossible - a necessary and sufficient condition for self-implosion. Now that everyone is onboard with the Harvard borrow-your-way-out-of-debt-crisis strategy, the outcome of this final disaster will be ruthlessly devastating for the overwhelming majority, apparently as was intended all along, by the higher power.


Rule #1 of Survival: 
Never believe in lies, proven liars, or Spanish bond yields at 1.70%...

First things first...
In Ponzi World, the more you borrow, the lower your interest rate. And these are the lies they so desperately cling to...
http://www.bloomberg.com/quote/GSPG10YR:IND/chart

This government borrows 7% of its economy every single year, to have GDP "growth" of .5%. An honest man would call that a Depression temporarily delayed by the bankrupting of grandchildren:




The HALO Crash Set-up
If I'm wrong, it won't be for lack of data, facts or reality. I'm old fashioned that way...

S&P Fractals

90%+ Retracement:
Two Central Bank meetings (Fed/BOJ) and Options Expiration, propelled the S&P to the best 3 day gain since 2011

By definition, a HALO crash from all time highs can only occur if the market is at or near all time highs...


Energy sector, broken



Canadian stocks, broken
Bounce off neckline



Rest of world, broken
Ready for another dip in the pool...




Nasdaq Internals, broken
Same Illusion, different day



S&P Internals, broken
We're not owed any more warning 



Hedging, broken



Junk Bonds, broken



Mispricing of risk visualized
S&P with options implied volatility