A Truly Taxing Day.

A Truly Taxing Day.

I'm not going to sugar coat it: all kinds of shit went wrong on Thursday. Stocks managed to get off the lows but the tax overhaul plan/bill released by Senate Republicans rattled everyone on a day when no one needed to be rattled. The problems really started on news the corporate tax cut might be delayed and you can see when that started to make the rounds: Bank stocks were hit again, and from where I'm sitting, this looks like 8 out of 9 sessions in the red: The five-day
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3 thoughts on “A Truly Taxing Day.

  1. “Meanwhile, the junk bubble looks like it’s (finally) bursting. Mom-and-pop high yield has fallen for seven straight sessions and is now below its 200-day MA”

    In the interest of accuracy, whatever that’s worth anymore, of which I am painfully aware, JNK at a close of $36.51 is NOT below the 200-day simple moving average of $36.23 (the 200 DEMA is a $36.15).

    The 20 DMA has not yet even crossed below the 50 DMA – close, but no cigar – which would be the point at which anyone really starts paying attention. My puts on HYG did get some traction, finally, but nowhere near anything that would be considered commensurate with any kind of widespread concern. Why is this no big deal yet? It’s no big deal because thus far, junk spreads have only widened maybe 10 bps in the past week – still just noise.

  2. According to my charts the 200SMA is currently at 37.03 so the price is well below it. I’ve also got the 20SMA crossing the 50SMA on Tuesday (7th) and yesterday the 20SMA crossed below the 100SMA.

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