aka. "No one told me"
Double Black Swan Event: This week saw the two highest option skew readings ever (Monday and Thursday).
A .00006% probability event going back 25 years, assuming non-correlation. Assuming correlation, the probability of a double occurrence is 100% as Goldman tipped off its top clients through the week...
The third highest was Oct. 14th, 1998 (LTCM/Russian default):
In addition, single stock bets reached Lehman levels:
Equity put/call (50 day moving average):
The market has been in no man's land for an entire year now, and the dumb money has been systematically obliterated. Wall Street is clinging to a fourth quarter rally to bail them out. The Flash Crash in August was totally ignored, meanwhile the historic odds given the year to date losses are 90% for a fourth quarter wipeout...
"Someone always knows something"
Treasury bond (price)
CNBC: Oct. 16, 2015
Six reasons why gamblers are "lost" and confused
1) Stalling Global Growth
2) Hard landing in China and Emerging Markets
3) Credit blowing out a la 2008
4) Fed clusterfuck. Interest rates stuck at 0%
5) QE failure
6) Earnings tanking. Valuations too high
Add:
7) Totally fake recovery
8) Debt at all time highs
9) Carry trade unwinding
10) IPO market obliterated
11) Biotech obliterated
12) The lowest liquidity ever...
The bullshit is still flowing like a river.
CNBC Oct. 14, 2015
Six reasons why bears are all wrong
Skynet is just flushing out the weak hands (shorts), before the next leg down.
Plan accordingly.