Wednesday, 23 October 2013

Risks - Perceived and Actual

When Perception of Risk is the Lowest, Actual Risk is the Highest....
O Ashuji...

Market rarely reacts to known risk and if it does, the move is usually deceptive. 

Perceived Risks...
US Debt Ceiling - CLEAR
Syria War - CLEAR
Fed Tapering - CLEAR
Who will next Fed Chairman? - CLEAR
China Slowdown - CLEAR
ALL CLEAR WITH PERCEIVED RISKS...

Actual Risks
Twitter IPO
Russell 2000 showing signs of parabolic move
Many Emerging Markets failing to cross May 2013 high (Indonesia,Philippines, Thailand, etc)
S&P 500 is up close to 22% YTD, almost entire move is due to P/E expansion
UST 10 year is still significantly above the lows of May 2013
Barron Cover Page has ceased to be contrarian indicator

Actual Risks through Chart...
New Highs Divergence


















Log Periodic Bubble Top at 1800??































NYSE Margin Debt vs S&P 500

















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