Is the Comey Correction Under Way?

Dow: -311.43...
Nasdaq: -133.69... S&P: -35.57...

Well, today was a delight.  The market tanked on the yet unseen and unproven "Comey Memo".  The kids in the media also started a really solid Trump Impeachment story, so that made the rounds.

For investors, the concern at hand is that an investigation or more "breaking news" stories could derail tax reform efforts and other efforts, which have already been slow to get on track.

The VIX (fear indicator) was only up 39% as risk left the building. Not only that, but treasury yields cratered as the market flocked to safety and bought bonds. Gold was up and the dollar was down pretty good.

As rates fall, the banks continue to get hammered.  Banks need higher rates, and that isn't happening.  Lower rates and a lower dollar also bring into question how strong (or not) the economy really is.

XLF -3%

Right now the markets are the victim of a massive media clown show.  I don't know how long this will last, but I would guess another three years, eight months. The anti-Trump media is dug in and they will not go away anytime soon, so don't expect any near-term relief.  This is now their mission. It will be interesting to see if the market will learn to immunize itself from it as time goes by. My guess is that it will eventually become white noise.

Biotech (XBI) broke that uptrend line again and is now coming into some lateral support around the 68 level.

Retail dropped another 2% today. Amazing how they hate this group. Doesn't really give you time to get short.

No recs tonight, let's wait for things to settle. We could see a powerful counter trend rally soon if things can settle down a bit.

 

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