Smart Money

Here Are The Four Reasons Why Investors Never Believed This Rally

The "smart money" have been net sellers of US stocks for the ninth consecutive week.
Investors are positioning for a market reversal based on leveraged positions in volatility funds.
Oil bulls never jumped on board the latest rally. 
The CS Fear Barometer remains elevated

Goldman Says To Sell Risk Assets, Go To Cash Ahead Of "Expected Elevated Volatility"

The latest to join in the skepticism rally is none other than Goldman Sachs strategist Christian Mueller-Glissmann who in the latest "Global Opportunity Asset Locator" report, writes that the "relief rally across risky assets might fade over the near term", warns that "sharp declines in oil prices are likely to weigh on risky assets again", suggests to go to "reduce risk allocation", warns against holding US HY bonds as "the risk/reward is least favourable if oil prices reverse course" and "go to cash" ahead of "expected elevated volatility."

Bloomberg Explains Why "Nobody Believes This Rally"

"I’m not buying anything; I’m sitting on my hands and waiting. I would definitely sell this rally because it’s totally central-bank driven and has nothing or very little to do with fundamentals."..."The question everyone should be asking is what has really changed in the last three months? Global concerns, while slightly less, are still there."

JPM: The Short Squeeze Is Largely Over

"Three quarters of the previous selling of equity ETFs during January and February has been reversed in just three weeks. CTAs appear to have fully covered their shorts. Indeed both CTAs and Discretionary Macro hedge fund managers appear to be close to neutral right now... we conclude that the short covering phase that started a month ago is very advanced."

"Fear" Indicator Surges To Record High

When it comes to the "here and now", which in the Fed's centrally-planned market is driven almost excusively by momentum ignition algos, complacency indeed rules (VIX 13). But even the merest glimpse into the near future, or rather how the present environment may disconnect with what may happen tomorrow, or next week, or, as the case may be, in three months, institutional investors are more concerned than ever before. But is this a confirmation that the US stock market is about to have a new "Deutsche Bank" moment?

The 19-Year-Old Who Outperformed 99% Of Hedge Funds In 2012 Shares Her "Trading Secrets"

"When I was 16 I was like, I understand a lot about, you know, companies," the "Desperate Housewives" actress told "Good Morning America" co-anchor Amy Robach. "And ... how they IPO on the stock exchange. I had this understanding and know-how. I had the skill of managing money. I have a couple different strategies," she said. "... With other investments, I will definitely pay attention to what's going on in pop culture a lot ... you can often take that information and kind of, arbitrage it before Wall Street knows about it.

10 Warning Signs of A Dangerous Stock Market

While many investors may be breathing a sigh of relief thanks to the bounce off the February low, with the S&P up 11% since the start of February – it’s still not all lollipops and rainbows out there in market-land. There’s some worrying undercurrents that could spell more trouble ahead...

How China Is About To Unleash A Monster Housing Bubble, In Six Easy Steps

What is worrisome is that since this trick can be applied basically anywhere in China, it will be and the elite in Shanghai and Beijing will catch on as will tier 2-4 cities, whose governments are even more desperate to rescue the housing market. With the elite and smart money milking the existing banking system in this way and moving money out, China's 3.2 Trillion (and declining for 4 consecutive months) official reserves doesn't look all that impressive.