S&P 500

Trader: “The Love Has Faded. Get Ready For Long, Tough Week”

Last week, the narrative cracked. To be sure, anyone who pays attention to this sh*t on a daily basis already knew that the whole reflation meme that's propped up stocks since the election had come under pressure on several occasions in 2017. Most notably i) the Friday before Trump's speech to Congress when 10Y yields hit YTD lows and stocks looked wobbly and ii) earlier this month when the bottom fell out for crude inflicting further damage on an already beleaguered commodities complex. But last Tuesday, the home gamers whose money has flowed into equities this year through popular retail vehicles like SPY learned that even in Trumplandia, stocks can go down as well as up. Then, on Friday, everyone learned that not only is Donald Trump not one of the world's preeminent deal makers, he in fact is a horrible negotiator and knows next to nothing about how Washington works (that whole "I'm an outsider and proud of it" thing came back to bite the President on the ass at a critical juncture). That served to further shake confidence and perhaps for the first time, retail investors were able to connect the dots. No "repeal and replace" means no tax reform and makes fiscal stimulus s
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