Every day since last Wednesday has been the same - overnight selloff followed by buying in the U.S. There is no risk too great to buy. However, the toll can be seen in volatility - whereas the S&P is down -2%, the VIX is up 50%, in three days. The bond market was closed today, giving a reprieve from RatePlosion, which is why interest rate sensitive sectors are "leading" today:
Skynet is fighting to hold the breakout Maginot Line above the January high. When the overnight gaps take the S&P below the breakout line, stop losses will implode Skynet...
Momentum is on the precipice of major stop losses and margin calls:
In summary:
The Nasdaq and momentum stocks are getting annihilated on a daily basis now. Some people were not around in Y2K to remember how much fun it was when momentum went bidless...
Small caps in free-fall
We haven't seen this few new highs since the lows of 2016, almost three years ago. Even lower than Jan/Feb VolPlosion 1.0:
We haven't seen this few new highs since the lows of 2016, almost three years ago. Even lower than Jan/Feb VolPlosion 1.0:
Momentum is on the precipice of major stop losses and margin calls:
Cross-listed Chinese stocks, locus of global implosion aka. the "gift that keeps on giving"
The 20 day moving average of new NYSE lows has almost reached February levels, despite the fact that the S&P 500 was down -10% back then versus -2% now:
Skynet's last trick - volatility compression - is losing control. The volatility term structure is getting set to invert again, which will initiate VolPlosion 2.0:
Wall Street is out in force telling gamblers to hide in Financials and Energy stocks due to rising rates:
"Shares in the VanEck Vectors Oil Services ETF saw a 6.5 percent boost over the month when rates jumped, while shares of the United States Oil Fund ETF ran up 4.5 percent, according to Kensho. The SPDR S&P Regional Banking ETF is also a top-performer"
"Are you sure about this?"
In summary:
