Another Pre- Flash Crash Moment ~ The Risk Averse Alert

Thursday, March 29, 2012

Another Pre- Flash Crash Moment

The CBOE Put/Call Ratio, much like yesterday's highlighted measure, suggests the market could be poised for a major setback...


The present moment's similarity to that leading up to the "flash crash" of May 2010 is both noteworthy, as well as fitting a consensus sentiment placing the threat of a crash nowhere on the radar. Evidence presented by other technical measures indicating underlying weakness consistently increasing over the past two years finds the CBOE Put/Call Ratio suggesting we might be just minutes until Spain implodes.

Sensational claims that, the ECB's liquidity flood brings Europe's problems "under control" only the more reveal the threat of a crash fittingly is being ignored — a risk with fundamental basis in fact, given extraordinary actions being taken by lenders of last resort on both sides of the Atlantic. Appreciating that, hyperinflationary happiness simply cannot stop is understanding the trans-Atlantic banking system's complete dysfunction. Yet that no one perceives imminent calamity exposes naked greed with very little basis in reality to reasonably expect its satisfaction. Thus, an hour made for experiencing grave disappointment rather rightly finds a consensus sentiment apparently quite oblivious, as indeed, it rightly should be.

Fast Money
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