Gartman did it again - as we warned pre-open - Which means one thing: both Goldman and Gartman are now short stocks, and expecting further selling - perhaps just the catalyst bulls were waiting for to step in and BTFD...
The machines were working over time to keep stocks up today to prove confidence in Trump and the economic hope remains...
But by the close they failed to hold The Dow green...Nasdaq surged (AAPL helped)
On Jan 11th, RBC's head of cross asset strategy Charlie McElligott wrote of "THE SINGLE-LARGEST MACRO INPUT RISK TO THE BUYSIDE," where he stated that the USD was the most important asset to the direct of the reflation trade and general macro positioning.
While quad-witching on index-rebal day usually leads to odd sights in the market, there was little confusion about what happened at the open, when as Bloomberg first noted, Apple shares dipped 0.1% lower after a size seller dumped 9.24 million AAPL shares in a single block trade at the Nasdaq open, at a price of $141.00, amounting to just over $1.3 billion worth of AAPL stock.
It is unclear as of this moment whether Warren Buffett was the buyer.
With stocks soaring briskly around the globe following Yellen's "dovish" hike, and futures set for a sharply higher open with the Nasdaq approaching 6,000, something surprising caught our attention: in a note by Goldman's Jan Hatzius, the chief economist warns that the market is overinterpreting the Fed's statement, and Yellen's presser, and cautions that it was not meant to be the "dovish surprise" the market took it to be.
While many have noticed the demise of volatility in the US equity markets - 104 days without a 1% drop, plunge in VIX, record low monthly ranges - it is the most highly speculative and most over-valued companies that appear to be the biggest beneficiaries of peak animal spirits. It has never been cheaper to hedge stocks in the Nasdaq...
The great moderation of risk is nearing unprecedented lengths...
While expectations of short-term stock volatility is jumping...