Well, literally nothing happened on Monday. If I was still in the habit of drinking myself to death I’d have been hammered hours ago.
Incredibly, Trump managed to get through the day without doing anything too egregious – I mean, he told 40 million people that the widow of a dead soldier is a liar, but as far as Trump goes, that’s small potatoes. Normally by the closing bell he’s tried to start a nuclear war and berated a half-dozen sitting Senators, so all in all, a quiet day.
Stocks fell, which isn’t supposed to happen and may soon be made illegal:
And because stocks were down, that means the national debt rose proportionally.
How long is this going to last?
Don’t call it a bubble:
The dollar was higher for most of the day but came off a bit. Traders are of course pondering the future for tax reform and Trump continued to treat his Fed pick like an episode of The Apprentice. Our prediction remains the same:
TRUMP SAYS HE'S `VERY, VERY CLOSE' ON FED CHAIR DECISION
fingers crossed on Krusty… pic.twitter.com/HShLOoaND1
— Walter White (@heisenbergrpt) October 23, 2017
GE is horrible piece of shit:
Worst day in something like six years:
As Bloomberg notes, EURUSD (sitting near a two-week low) remains in a tight trading range ahead of the ECB, with support at the early October 1.1670 low, bolstered by the 100-DMA at 1.1660.
Things are quietly getting dicey in Europe. For instance, Italian shares are on pace for their worst month since January:
You’ll note that the political situation in Italy is back on investors’ radar after two autonomy referendums (Lombardy and Veneto) buoyed the prospects for the The Northern League. That, just as investors are trying to figure out exactly how the standoff between Catalonia and Madrid is going to “resolve” itself. Have a look at the divergent paths European stocks have taken month-to-date (DAX, CAC, EuroStoxx on top, MIB and IBEX on bottom):
The Nikkei of course rose for a 15th consecutive session as investors pile in for the ride on the assumption that with Abe’s grip on power cemented, Kuroda has the green light to go ahead and completely nationalize the stock market.
Finally, here’s a picture of Alex Jones, for good measure…