Tuesday 19 March 2019

Latter day weakness

US equity indexes closed on a rather weak note, sp -0.4pts at 2832. Nasdaq comp' +0.1%. Dow -0.1%. The two leaders - Trans/R2K, settled -1.3% and -0.6% respectively.




It was a day for the bulls, as despite latter day weakness, the SPX broke a new multi-month high of 2852, the highest print since Oct'10th. Volatility remained subdued, with the VIX churning in the 13/12s.

Meanwhile... Trump had a press conf' with Brazilian President Bolsonaro.

I managed to stomach three minutes before having to hit the mute button.

Regarding socialism, whether you are supportive of it or not, any kind of local/central govt' is by definition 'socialism'. Do I have to cite the US welfare system, education, roads, or even the armed services? Those are inherently all socialist structures. Bizarrely, neither Trump... nor many others, can accept that truth.

Ohh, and as for the FOMC on Wednesday. I'll merely note that an end date for QT might well be announced. If not... then it will be even more probable May 1st or June 19th. The conclusion of QT will be the pre-cursor to a rate cut, which is arguably the ultimate sell signal - as it was in Sept'2007.

Searching for a ray of light

An eerie glimpse of the nearly full moon
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Goodnight from London
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