Today is going to be an insane day.
— Comfortably Smug (@ComfortablySmug) April 23, 2018
$SPX does not like UST10Y 2.991 pic.twitter.com/bwg45AxfGv
— Alastair Williamson (@StockBoardAsset) April 23, 2018
Why insane? Smart money knows what to do : pic.twitter.com/S5gCwC3eEc
— GregTheAnalyst (@Analyst_G) April 23, 2018
#Yawn… Just another week of #DumbMoney buying the Open and #SmartMoney selling the Close as the #Distribution continues for the 11th consecutive week… negative momentum really picking up in the tech sector… #FANGsBite pic.twitter.com/8uiVG51Yzq
— Mark W. Yusko (@MarkYusko) April 21, 2018
The US 10-Yer Bond at 2.97% and close to breaking 3%. Risks:
– Signals end of cheap credit bubble.
– Sudden Stop: Flows out of EM, EU and into US
– Nominal and Real Losses in Negative Yield Bonds
The US 10-Yer Bond at 2.97% and close to breaking 3%. Risks:
– Signals end of cheap credit bubble.
– Sudden Stop: Flows out of EM, EU and into US
– Nominal and Real Losses in Negative Yield Bonds pic.twitter.com/IeUtACMcKJ— Daniel Lacalle (@dlacalle_IA) April 23, 2018
10 Y – 30 Y spread < 19 BPS pic.twitter.com/255Iy52zY2
— OW (@OccupyWisdom) April 23, 2018
US bond rout continues. The US 10y yield is inching closer to 3.00%, highest since 2014, 5y yield trades at highest level since 2009. pic.twitter.com/WcsJfWa1Kq
— Holger Zschaepitz (@Schuldensuehner) April 23, 2018
The most insane S&P500 Chart — Ever… pic.twitter.com/YKPzYw1DeR
— Alastair Williamson (@StockBoardAsset) April 23, 2018
Mobius thinks that US stocks will crash by about 30% in 18 months or less.
Also, Jason talks about how many professional money managers and professional investing consultants who advise clients who have billions in assets under management are now telling their clients to start selling their stock positions every time the stock market rallies and to fade the stock market rallies. This selling pressure by “smart money” aka professional investors has increased a lot the last few months especially since the VIX spike in February. The buyers of stock continue to be mostly retail investors through mutual funds, passive investing (ETFs) which is considered “dumb money.” Also, high frequency trading (HFT) hedge funds are still occasionally buying stock but they are only short term focused and don’t care if the stock market does indeed crash in the near future.