Via Energy and Gold.com:

It's been a long time since i've seen such an abundance of yellow/red flag warning signs out there. At this moment I would be remiss if I did not point out all the warning signs i'm seeing:

    • M&A activity during the month of May is set to blow the previous record month (May 2007) out of the water
    • There has been an explosion of unprofitable IPOs during the past year from already elevated levels
      Unprofitable_IPOs
    • Private tech financing volumes are on track to exceed 1999 levels, only surpassed by 2000
    • Tech_IPO_issuanceThe transports (the sector which led the equity market breakout in January 2013) are breaking from a multi-month topping pattern with consecutive weekly closes below the 50-week simple moving average for the first time since 2012
    • IYT_Weekly_5.29.2015NYSE margin debt reached a new record in April and investor negative credit balances have never been close to as negative as they are currently
    • NYSE_negative_balancesMeanwhile sentiment remains quite optimistic

II_Bulls_Bears

Speculative debt-fueled froth, a panoply of bearish technical signs including a breakdown in the market leading transports, and euphoric investor sentiment is the perfect recipe for a sizable market correction. Given that the S&P 500 is barely more than 1% from its all-time high reached less than two weeks ago, the stage is set for a significant drop in equities. A 10% correction would bring the S&P back to important support/resistance near the 1900 level, a completely normal move especially considering that it's been 3 years since the S&P 500 suffered a 10%+ decline.

SPX_Weekly

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