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The Big Short continued from my 9/20/16 post. (scroll below) On that day I posted the same chart as shown but when 100% of the telecom stocks were bullish. Today, Nov. 2nd 2016 that has been cut in half. As I also mentioned then that Apple Computer which has 52% of its market cap tied up in the iPhone will be the Big Short. This was the most favored stock by analyst with a medium price objective of $130 (as of this day Apple is at $110).
The health of a market is made up of its compenents. When Telecom was the last remaining bullish industry, it was just a matter of time (law of numbers) until when the market would drag this sector down with it. Now, the market is ripe for a big selloff with no strenth within its sectors. The only places to hide will be Gold and Bonds.