Ponzi World (Over 3 Billion NOT Served)

The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.

Wednesday, February 24, 2016

All Shorts Must Cover Prior To Collapse

We have the daily oil short-covering rally. Last week was the junk stock short-covering rally, and the volatility compression. As it was post-Lehman, 2008, and prior to the Wave 3 meltdown, shorts are being systematically obliterated.

One more "pair trade" just got unwound in the past few days, the Large cap / small cap (short) trade:

Wilshire / S&P ratio:

Equal weight / cap weight ratio:

Six months' overbought on the McClellan oscillator:

Index call/put ratio: Complacency visualized...