It's been a little difficult finding charts worth my time to post. Not only because just about every ticker is in top 10% of its historical IV% percentile, but to me, I just don't see the opportunities some other people might in being long. Nonetheless, I still don't even think people completely understand the fragility of our financial market. Not only are financials beginning to drown into a bear market, but the justification for some is that, on a P/E basis, the market is cheap compared to back in 2015. What most everyone doesn't realize is that the bull market came from a surge in the dollar from 2015 when the fed merely "Announced" they'd begin raising rates. Which, back then, weren't even half of what rates are now. The plummeting of oil that dropped a barrel down to $26, came from that significant of a "flight to safety" for the dollar because of the possibility of risk free returns at such a low interest rate. It should be 0.0000% of a surprise that the dollar WON'T make a higher high than it did in 2016-2017 even WITH a 10 year yield of over 3.25%. Some people are also confused about why the fed continues to raise rates given the low inflation measures that've been coming in - needless to say there's a deficit that continues to climb to record highs that has to be funded somehow, right? Treasury can't continue to sell bonds unless investors are given an attractive incentive of a higher interest rate. Which I went the extra mile to use the BEA IAT (International Accounts of Transactions) to look @ foreign direct inflow of investments to see just how much of a demand there is for US bonds - since 1984, the US has only seen negative inflow of investments in 2018, 2014 (when we almost defaulted on our debt), 2005, & 2003. So really, it shouldn't be a surprise to anyone when the fed continues to raise rates - let alone every commercial bank, financial group, industrial bank, or other lender continues to severely underperform the S&P.
stockcharts.com/c-sc/sc?s=$SPX&...
stockcharts.com/c-sc/sc?s=$SPX&...