JPM On Today’s Sudden Intraday Reversal: “The Question Is Why Stocks Were So Strong To Begin With”
by Tyler Durden
ZeroHedge.com
Jan 3, 2017
Confused by today’s sudden intraday reversal in risk assets, which pulled the Dow Jones from up over 160 to barely in the green, while slamming Crude from up over 2% on the day to red?
You are not alone: as JPM’s Adam Crisafulli opines in his intraday “market update” note, “the question isn’t why stocks have come in from their highs but instead why they were so strong to begin with.”
From JPMorgan:
Market update: The reflation trade was strong out of the gate but has reversed a decent amount heading into the afternoon – the question isn’t why stocks have come in from their highs but instead why they were so strong to begin with.
In a lot of ways trading is similar to the last two weeks of Dec in that news is minimal while liquidity remains limited. The only major headlines over the last few days were manufacturing PMIs and while they were either inline (Eurozone, China NBS) or better-than-expected (US, UK, and China Caixin) none of the figures are dramatically altering the narrative around growth and the key for stocks over the coming weeks and months will remain US politics (specifically the progression of tax/regulatory reform and realization of Trump’s trade agenda). Trump’s GM tweet Tues morning didn’t help sentiment although fits a pattern that is now several weeks old (he has tweeted on a variety of corporate matters since 11/8).
The Rest…HERE
