Tuesday, October 13, 2015
CBOE skew hits record high, therefore buy with both fists
Zerohedge - market skew has never been higher. I'll link to this neo-Nazi Russian-funded disinformation and propaganda site before I link to BI.
Anyway, this article says far-tail crash protection has never cost more. The Russian-funded Bulgarian Nazi traitor to America even provides a great chart:
Which is great because it shows us the previous spikes occurred in Jan and Apr 2014, which were both great times to buy SPY.
Meanwhile, the chart also shows a really really really really low skew in the beginning of 2008, which actually would have been a darn good time to sell every stock you have, double-short the civilized world, and go hide in an underground bunker for a year.
Oh, I see skew was also low in March 2000, which is exactly when you should have puked the NASDAQ.
Hey, what about that other spike in 1998? I guess that coincides with the August '98 20% correction, which was followed by a 50% rise in SPY. Yes, SPY, not QQQ.
Wow, guys. A more fantastic contrary indicator I have never seen.
I guess that so many of the white-ass honky crackers are piddling their panties that they've decided to forego inverse SPY ETFs and throw all their idiot honky client money right into far-out-of-the-money puts.
Which I guess is a sensible strategy if you're getting all your news from a den of idiots like BI or ZH. Which I'm sure is where all the hedge fund managers go for the latest news.