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Well, my one (count ’em, one) NFLX put is going to get clobbered in the morning, now that after-hours trading shows NetFlix exploding higher by about 16% as of this writing. During my TastyTrade show, Tony expressed convincing bullishness for NFLX, which I confess spooked me a bit, so I reduced the size of my short substantially. Needless to say, I’m glad I did. This one has become a monster again.
Tinted below is approximately where it’s trading right now.
If there was a way to strangle a monitor, I’d be surrounded by dead monitors right now. It’s all because of one chart, comparing the EUR/USD for the past 120 trading days with the @ES:
As you can see, for about the first half of the chart, the @ES cheerfully followed the EUR/USD higher.
But somewhere around the time I’ve tinted in magenta, they disconnected. The EUR/USD has been in a bear market for two solid months. Equities, however, have merrily pushed higher, utterly oblivious.
What scares the hell out of me is that the EUR/USD looks like it may be ready to bounce. If equities can’t fall in the face of a collapsing Euro, what are they doing to do if the Euro strengthens?!?!?
There needs to be a stronger word for a combination of “frustration” and “disappointment” than I can conjure up right now. The decoupling above is a heartbreaker.
Well, here we are. LDI is making money. Bernanke can do no wrong. Obama is in his second term. And Karl's whistling didn't do a thing to stop it. We are fully on the other side of the looking glass. Oh, and if you are wondering where Wave 3 is, he's hanging out with the Easter Bunny and the Tooth Fairy.
