Why a Massive Selloff in Risk Assets Could be Just a Few Days Away?

First market breadth is diverging with the New 52 week high low indicator not confirming the recent retest of highs in the S and P 500:



High beta segment of the market such as the Nasdaq is beginning to under perform the broader market much like in 2000:



The Skew Vix ratio as shown on stockcharts has spiked into double digits recently suggesting high tail risk, which is often a precursor to rising volatility and a risk off trade set up:

All this as we are in the middle of an emerging market currency crisis much like in 1998 unsupported by a tightening FED:

Emerging markets currencieshttps://t.co/iMzAOoBsZ4 pic.twitter.com/1f4DfSdl1e

— Chart of the day (@macrovaluechart) August 16, 2018

Quantitative Tightening Update (June 2018) – 5 Fed Charts https://t.co/IvFzZqBq2c via @seeitmarket

— Stéphane Collot (@stephanecollot) August 16, 2018

Bitcoin 2017 Vs Home Builders 2008 Vs Nasdaq 2000

Most periods of excessive booms end with speculative busts. The dotcom bust of 2000 produced a recession so did the housing bust of 2008. Today's poster child seems to be bitcoin. Just as the internet was here to stay back in 2000 so is block chain technology today. However crypto currencies are trading at levels suggesting they could become reserve currencies of the world replacing the dollar and that implies a reset on short order. It's never different and always the same:

Interesting Market News and Views from Global Financial Markets-4

1) S&P 500 back in black for 2015, Nasdaq leaps 2.3% - USA TODAY

From www.usatoday.com - October 26, 6:56 PM

Tech stocks power the rally on strong earnings from Microsoft, Amazon.com, Alphabet."

2) Bear Market History: The 10 Biggest S&P 500 Pullbacks - Money Morning

From moneymorning.com - October 26, 6:56 PM

There are multiple signs pointing to a bear market in 2015. That's why we've compiled a list of the 10 worst drops in bear market history."

3) What's Really Driving the Stock Market's Big Rebound Rally? - The Fiscal Times

From www.thefiscaltimes.com - October 26, 6:56 PM

A combination of solid earnings (especially in tech) — as well as a fresh interest rat"

4) The S&P 500 is up an impressive 0% this year - Business Insider

From uk.businessinsider.com - October 26, 6:56 PM

Stocks, emerging market FX, and oil are well off their lows."

5) Techs lead Wall St. higher; S&P 500 erases 2015 loss - Reuters

From www.reuters.com - October 26, 6:49 PM

A tech share rally drove U.S. stocks up sharply for a second day on Friday as earnings from companies including Microsoft beat analysts' expectations, while healthcare shares rebounded from recent losses."

6) What If The US Is Japan And Deflation Is Fate? - Seeking Alpha

From seekingalpha.com - October 25, 9:36 PM

Make no mistake about it – while we can talk about daily market movement and the news du jour, the reality is we live in a very small sample. The biggest macro"

Interesting Market News & Views https://t.co/8DPVZZJ2sI pic.twitter.com/eBfKzbkViH

— samuelR (@RajveerRawlin) October 28, 2015

Bear Market ETF's to Consider for 2017 and Beyond

Bear Market Lessons from History

While the financial media tends to be absolutely infatuated with stocks hitting new highs every day, we would do well to pay attention to some ongoing bear markets, Charts are courtesy yahoo finance and marketwatch.com:

1) Japanese stocks continue to languish under the effects of deflation following a well over 26 year old bear market, down over 45% from the highs set in 1989.



2) Despite some great innovation out of the U.S from the likes of Apple, Google, Facebook e.t.c the #NASDAQ continues to remain in a 15 year bear market near its highs set in 2000.



3) Despite going parabolic yet again, Chinese stocks continue to remain in a 7 year bear market down well over 50% from the highs set in 2008.

4) US bank stocks are entering a 7 year bear market despite all the #QE money and super low interest rates down over 30% from their highs set in 2008.



5) The #Euro is also in a 7 year bear market down over 25% against the dollar from it's highs set in 2008.



6) #Gold and gold ETF's continue to be in bear markets down well over 35% from their highs set in 2008.



7) The more recent casualty #oil and oil ETF's are down well over 60% from their highs set in 2008.




It is well worth noting that it is no strange coincidence that there are major bear markets in several key asset classes and despite recent bear market rallies caused by the FED's QE for ever policies the hibernating bear is all set to emerge with a vengeance.

Bear market lessons from history from Rajveer Rawlin

Bear Market Lessons From History http://t.co/TcQy3nOE0r pic.twitter.com/wNba6Jh5Ys

— samuelR (@RajveerRawlin) September 7, 2015