{"id":29943,"date":"2018-01-20T13:18:46","date_gmt":"2018-01-20T18:18:46","guid":{"rendered":"http:\/\/olduvai.ca\/?p=29943"},"modified":"2018-01-20T13:18:46","modified_gmt":"2018-01-20T18:18:46","slug":"warning-markets-reaching-extreme-leverage","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=29943","title":{"rendered":"WARNING: Markets Reaching Extreme Leverage"},"content":{"rendered":"
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WARNING: Markets Reaching Extreme Leverage<\/a><\/h3>\n<\/header>\n
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\"\"As investors\u2019 bullish sentiment moves up to euphoric levels, the markets are reaching extreme leverage.\u00a0 This is terrible news because a lot of people are going to lose one heck of a lot of money.\u00a0 According to CNN Money\u2019s Fear & Greed Index, the market is now at the \u201cextreme greed\u201d level and if we go by Yardeni Research on \u201cInvestor Intelligence Bull-Bear Ratio,\u201d it\u2019s also is the highest ratio in 30 years.<\/p>\n

But, of course\u2026 this time is different.\u00a0 I continue to receive emails and comments on my blog that the Fed will continue to prop up the markets.\u00a0 Unfortunately, there is only so much the Fed can do to rig the markets.\u00a0 Furthermore, the Fed can\u2019t do much to mitigate investor insanity in record NYSE margin debt<\/a> or the massive $2 trillion in the global short volatility trade<\/a>.<\/p>\n

The record NYSE margin debt suggests traders have racked up a record amount of margin debt (33% more since 2007) and the largest short volatility trade in history.<\/strong>\u00a0 By shorting volatility, investors are betting that it will continue to move lower.\u00a0 A falling volatility index suggests more calm and complacency\u00a0in the markets.<\/p>\n

So, the market will likely continue higher and higher, until it finally POPS.\u00a0 And when it does, watch out.<\/p>\n

I\u2019ve put together some charts showing the extreme amount of leverage in the markets.\u00a0 While this leverage may increase for a while, at some point the insanity will end in one hell of a market correction-crash.<\/p>\n

The Commercial Banks Are Betting On Much Lower Oil Prices<\/strong><\/p>\n

As I mentioned in previous articles and my Youtube video, Coming Big Oil Price Drop & Market Crash<\/strong><\/em><\/a>, the Commercial banks have the highest net short positions in the oil market in over 20 years.\u00a0 In the video, I explained how the Commercial net short position in oil increased from 648,000 to 678,000 contracts in just one week.<\/p>\n<\/div>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

WARNING: Markets Reaching Extreme Leverage As investors\u2019 bullish sentiment moves up to euphoric levels, the markets are reaching extreme leverage.\u00a0 This is terrible news because a lot of people are going to lose one heck of a lot of money.\u00a0 According to CNN Money\u2019s Fear & Greed Index, the market is now at the \u201cextreme […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[63,145,7551,481,506,592,2227,12073,2443],"class_list":["post-29943","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-banks","tag-cnn","tag-dow-jones-industrial-average","tag-leverage","tag-markets","tag-oil-price","tag-prices","tag-srsrocco-report","tag-stock-markets"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29943"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29943\/revisions"}],"predecessor-version":[{"id":29944,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29943\/revisions\/29944"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}