Social Mood Ran Into The Brick Wall Of Reality

Central Banks reverse engineered social mood higher for six years straight via the casino, while the economy was decimated. Now, social mood is collapsing as reality crushes mass delusion. 

Global Risk Off Visualized. This clusterfuck doesn't go in reverse...

Brokerage stocks are now tanking as another generation of gamblers has been fully monetized:

Dead Unicorns visualized:
The IPO index has been monkey hammered back two years, as the IPO market has gone dead. 

IPO volume is down a staggering -67% year-to-date. Even backing out Alibaba from last year, net proceeds are down -50%:

Year to date issuance:

Data from: http://www.renaissancecapital.com/ipohome/press/ipovolume.aspx

Monthly: One year ago this week was the biggest IPO in history...

The IPO Hall of Shame:

Almost all IPOs in the past two years have the same pump and dump profile - straight up, straight down...

Mass Production Created The Middle Class. Now It's Destroying It

This is the era of corporate Shock Doctrine wherein corporations liquidate their end market aka. the middle class and are now liquidating themselves via stock buybacks, amid falling revenue.

ZH: Sept. 25, 2015
Big Business Is Economic Cancer

To paraphrase: The Benefits of Small Business over Mega-Corporations:

Small businesses create the vast majority of jobs
According to this article from earlier this year, small business created all net new jobs since 2012: Five Years Into Recovery, Dow Companies Squeeze Workers, As Investors Thrive

Labour intensity, and labour diversity. Less specialization allows workers to gain a variety of useful skills

More competition, less monopoly/oligopoly

Less political corruption

I would add...

More wealth retention within the community

Less poverty

Local sourcing/Greater economic multiplier

More diverse economy

More entrepreneurship/ownership

Happier/healthier society

Balanced economy


No casino / Bankster rent-seeking.

The Stock Market Is Falling Apart Piece By Piece

The S&P 500 fell 110 points in one week from the post-FOMC meeting last Thursday to yesterday's low i.e. -5.5% in one week. The market is now carving out a three wave retracement of that move.

Almost ALL of the movement in the U.S. markets this past month came off-hours in the futures market. Currency volatility is now being transmitted directly to stocks. 

Goldman Skynet has lost control of the markets. 

I just read this load of hopium-based bullshit saying that stock investors are the most bearish in 15 years, which is "bullish". Apparently, stock investors can be bullish throughout an entire rally and that's bullish, but when they finally flip to bearish, that's bullish too? Holy fuck. When does bad news ever become bad news in hopium-land?

It's a tale of two markets: The reality is that there has never EVER been as much single stock risk as there is today, because the market cap weighted indices are hiding the destruction occurring behind the scenes...

The last time the NYSE composite was this obliterated, the overall market was down -20% in 2011 and -30% in 2008:

NYSE Composite: % of stocks above 200 day moving average:

Therefore, single stock hedging has risen commensurately:

Equity Put/Call:

Whereas, index hedging is non-existent...

Idiocracy: A Society That Only Trusts Those Who Can't Be Trusted

Nothing will change until the Status Quo is obliterated. And the fastest way to end the Status Quo is to:

"Maintain the Status QuoTM"

Re·ac·tion·ar·y: "One who defends the status quo. Ultra-conservative" 

There is nothing new about reactionary politics. It's been a feature of every collapsing society since the beginning of mankind.  

In other words, there is no way this could all just implode in broad daylight.

Unless, the denialists only trusted those who can't be trusted. 

To Rush Limbaugh & Co.: Keep up your good work. 

"Bears Beware": Shorts Just Covered

ZH: Sept. 24, 2015
"Prescient Quant Just Flipped Bullish"
The "timely" quant who exact-timed the Flash Crash has now switched to a bullish stance. His first bearish call (Aug. 21st) directly preceeded the 1,000 point Dow collapse; however, his next two bearish calls (Aug. 27th/Sept. 3rd) were within the range of the rising wedge, so he was only right one time out of three. Nevertheless, the market rallied today within minutes of his new call...

Aussie /Yen: The bleeding indicator:

Far from Quant-land, today's short-covering rally was telegraphed hours earlier by the counter-trend rally in the Aussie /Yen, which started this morning. 

Because although the S&P is one degree removed from Aussie/Yen (via USD/Yen), nevertheless, this pivotal carry trade currency pair serves as a very useful leading indicator for where this shit show is heading...

In other words, today's "squiggle" in the S&P (black) was preceded by the same "squiggle" in Aussie/Yen (red):

This chart below is the chart above, on a 20 year timescale...

Party Like It's 1929

The Social Mood leading up to the 1929 crash was one of mass denial as well...Everyone drinking the Kool-Aid. A necessary and sufficient pre-condition for a surprise collapse, in broad daylight...

"Four Must-buy stocks, including Exxon..."

1929 Dow:

2015 Nasdaq 100

Wilshire 5000 Total Market Index

Exxon Mobil

Third World Liquidity..."Is '1' Better Than Banana Republic"

The usual denialists are buying the dip with both hands, making shit up as they go...

Since the Yuan devaluation there have been 11 overnight sell-offs in one month...
S&P with down gaps (black are filled, green are open):

NO LIQUIDITY
Average S&P Stock (red) with interest rates (black):

Bulls are not worried (Intra-day TRIN):
TRIN ("Trading Index"): Indicator of selling urgency...

Breaking Bad

The Flash Crash/rebound in August skewed a lot of charts to look as though the worst is over, from a daily perspective. The weekly view tells a different story...

New weekly lows. Today:

Entire world ex-U.S.:

European stocks (composite):

Emerging Market Credit...

"Which Stocks Should I Buy In A Global Meltdown?"

The fate of this clusterfuck hangs on Indonesia, Malaysia, Brazil, Turkey, South Africa, China et al...

This just in: 

"CNBC Pro asked some market experts, as well as ran some quantitative analysis, in order to find which securities have the most to lose and the most to gain from a global meltdown."

You can't make this shit up...

Meanwhile, Damocles' Sword (Yen Carry Trade) hangs by a thread...

Yen / S&P 

BBG: Aug. 25, 2015:

"The Period is Over For Carry Trades"

One year Yen: Pausing at key support...

Aussie Dollar/Yen: Carry unwind strengthens Yen...

Strengthening Yen unwinds "S&P carry trade"

WARNING: Meltdown In Progress

Current futures liquidity level:

Heaviest cumulative selling since Lehman:
Down volume / total volume 30 week moving average

Global Dow:

EM Currencies and Debt:

CasinoConomy:

IPOs