Today was a day in the upside-down: Banks underperformed Tech; High tax underperformed Low tax; Momo outperformed Value; Nasdaq outperformed S&P; and VIX down with stocks down...
Just two weeks ago, Bank of America's Chief Investment Strategist Michael Hartnett came out with what was more or less the most apocalyptic big bank forecast for the coming year. In it, he predicted that the market would not only peak in the first half of 2018, and that there would be a flash crash "a la 1987/1994/1998" in just a few months.
It will come as a surprise to precisely no one that Trump has a 'slightly frayed' relationship with the intelligence community. As you'll undoubtedly recall, Trump engaged in a protracted, public dispute with Obama's former CIA Chief John Brennan over his assessment of 'Russian meddling' in the 2016 election...
.@FoxNews "Outgoing CIA Chief, John Brennan, blasts Pres-Elect Trump on Russia threat. Does not fully understand." Oh really, couldn't do...
— Donald J. Trump (@realDonaldTrump) January 16, 2017
Bailins Coming In EU - 114 Italian Banks Have NP Loans Exceeding Tangible Assets
One look at S&P futures this morning reveals an unchanged market, however it is again the violent sector rotation that is taking place behind the scenes that is the real story, with defensive sectors real estate, retail, food, utilities outperforming while investors continue to bail and book profits on tech stocks after sharp gains since the start of the year.