Let’s just put the pieces together here.
Donald Trump decided it was a good idea to throw the Justice Department, the FBI, and the special counsel appointed to lead the Russia probe under the bus in a NY Times interview.
24 hours later, we learn that the special counsel is now doing exactly what Trump claimed – in that same interview – would be a “red line”.
But we got this from Kuroda overnight:
- KURODA: BOJ WILL PERSISTENTLY CONTINUE POWERFUL EASING
And this from Draghi this morning:
- DRAGHI SAYS ECB TO STAY IN MARKET ‘FOR REALLY LONG TIME’
Which of course is the greenlight to stay long risk and short vol.
So, here ladies and gentlemen, is what the “buy-the-President-will-probably-end-up-in-prison-dip” looks like:
Meanwhile, gold isn’t so sure this is a dip anyone should be buying:
“Mueller’s surprise announcement that he will expand probe into Trump’s business dealings sparked a quick rally in gold as it brings the investigation back into the news cycle,” Tai Wong, head of base and precious metals trading at BMO Capital Markets in New York, told Bloomberg in an email.
“It’s also likely to trigger a POTUS tirade and possible other impulsive actions, which are sending some investors for cover,” he added.