This was another day dominated by crypto news, tax banter, and Donald Trump – in other words, another day in hell.
You can read all about Trump’s decidedly ill-advised decision to make a lewd comment about a sitting Senator here, but for those who missed it, suffice to say one of his morning tweets was even more egregious than usual.
As far as the increasingly manic cryptoverse goes, Litecoin and Ethereum are going nuts as investors scramble to ride what they assume will be the next wave. Coinbase paused trading for both on Tuesday for more than an hour.
Have a look at this absurdity:
Here’s something worth noting (but what does he know, right?):
Every crypto bull run I've seen has been followed by a bear cycle. The market needs time to consolidate. That's just my experience from 7 years of watching this space.
How low and how long it will be is TBD. People need to be aware of this possibility and invest responsibly. https://t.co/ozcR11N68o
— Charlie Lee [LTC] (@SatoshiLite) December 11, 2017
Meanwhile, the arb is sticking around for the time being:
U.S. stocks were mixed although the Dow did manage to rise triple-digits. Tech and small-caps underperformed:
Quick aside: According to Ed Clissold over at Ned Davis, the tax cuts could contribute 12.5% to S&P EPS growth next year, while the macroeconomic impact (GDP+inflation+growth above GDP) may contribute 5.8%. “But even if Congress passes tax legislation, 18.3% EPS growth will not be enough to keep S&P 500 y/y point change in GAAP y/y earnings growth in its bullish zone.”
After the bell, WaPo reported that Republicans are in “advanced talks” to lower the top individual tax rate to 37% from 39.6% while according to Bloomberg, lawmakers are “leaning toward” a corporate rate of 21%. That latter bit probably won’t make Trump happy.
The dollar shrugged off more tax bill headline hockey to rise for a seventh session – that’s the best streak of 2017:
Good day for banks and especially for Goldman:
Crude abruptly reversed course after Brent topped $65 overnight as the market appears to think the Forties surge was an overreaction. Additionally, there was this:
- U.S. SPR crude stockpiles increased 200k bbl last week to 662.9m bbl, in rebound from 13-year low prior week, DOE data show.
- Biggest gain since +513k in July 2015
- 1st rise since +2k bbl in March 2016
European shares were up across the board on Tuesday. The Stoxx 600 is sitting at its highest level in five weeks and the FTSE is tracing a similar trajectory:
Don’t forget, the ECB and the BoE are coming up later this week.
Finally, pray for America because we’re about to find out if this guy gets a Senate seat:
WATCH: Alabama Senate candidate Roy Moore arrives to vote on horseback pic.twitter.com/crp2cfsfNA
— NBC News (@NBCNews) December 12, 2017