Having paused at the top just long enough to allow bank executives to unload record amounts of stock, Wall Street is now abandoning Trump en masse. Go figure...
Dick Bove: The Bank Trade is Over
The Trump Train Is Stuck Between Stations
Trump Dropped The Monetary To Fiscal Policy Baton
Trump And Yellen Now At Loggerheads
In other words, the reflation trade is over and the deflation trade is back. There's only one problem, gamblers sold epic amount of bonds to buy stocks, and now that has to be reversed.
Fortunately, the stock/bond rebalancing is well underway:
Now we know who is selling...
The deflationary rotation is bypassing dividend stocks, because it's the end of the cycle. Like last time...
Consumer staples % bullish:
"Yellen is moving the ball down the court, while Trump still has failed to put the ball in play"
Rest of World: "Dear Janet, since everyone now knows that your rate hikes are based upon a delusional fantasy, we want our money back"
And I find it more than slightly coincidental, that Government Sachs executives sold record amounts of company stock recently, but now will lead discussions to rein in Yellen. Which, will collapse the exact same bank stocks they sold.
It shouldn't be too hard to convince her that she's wrong...
New Commercial Loans Year over Year % change:
Another great con job by the way:
This was the first wave down for Tech (Nasdaq) which going forward will lead the burial service lower...
Conned by Donny Trump. Glad I don't have that on my resume...
