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One Strategist Is ‘Taking Profits As Soon As Possible’ After Best Surge Since 2009
What if the bounce is over?
That's something nobody really wants to comprehend, with market participants still high off Monday's best-since-2009 Dow surge, a 5% upside explosion the likes of which hasn't been seen in a decade. The RBA delivered a rate cut Tuesday and the BoJ is apparently prepared to show its resolve too.
You could have cited any number of factors for the afternoon acceleration into a rising tape on Wall Street to start the week (some suggested Amy Klobuchar’s decision to en
How does money stimulate something that is shut down? And at what point of the unfolding of Trump trade disruption are we? Supply chains do not reconfigure instantly.
Are you saying 25 basis points won’t get you on a cruise ship? Maybe 50?
“But if Monday’s surge was predicated on the forthcoming call (as well as rhetoric from the BOJ, BOE and ECB), then that by definition means the event itself has the potential to turn into a “sell-the-news” moment. Because the “rumor” was damn sure “bought”.”
No one particularly wanted the dollar moving higher and global central banks have just been given an excuse to do something about it. Trump’s weaker dollar objectives may well be fulfilled. Given Trump’s extreme nature, I wouldn’t be surprised if Tuesday brings a market infused with the ‘expectation’ of persistent future coordinated monetary actions. I really don’t see a sell the news type event, given the Pavlovian ‘buy the dip’ mentality hammered into the equity markets.
Why bother to have a global coordinated monetary action if you expect the equity markets to go down? Investors just need to be given a reason not to sell.
That was seriously weak policy action this morning. O.k, now the market has an excuse to sell the current bounce. The central banks can only react to a crisis, they can’t prevent it. My hopes were far too high for a bunch of appointed civil servants.
This is for sure sell the news. Peel back virus headlines and look at the Econ data. Does anyone honestly expect equities to maintain stretched valuations through a global recession? Not a chance.
Well, I hope he took his profits around 10am this morning….