Tuesday, April 4, 2017

"Who Wants More Shovel-Ready Bullshit?"

The reflation trade caught another short-term bid this morning compliments of Trump's shovel-ready bullshit. Gamblers don't care about Trump anymore, they're not buying because of him anymore, they're buying in spite of him...

The bond market however, not so much:

"The whole Trump trade, the reflation trade — the odds are, that's over. What we're seeing is there's no breakout trade of massive, upcoming fiscal stimulus...We have the same economy we had six months ago, but with higher interest rates and a stronger dollar, and with a late-cycle economic situation, there's no upside. All of a sudden you're seeing peak auto sales" 

Treasury yields turned slightly higher Tuesday, as Trump spoke with CEOs, promising infrastructure spending and deregulation, but some strategists saw that as just a minor correction in the recent trend of lower rates."

ZH: Treasury Yields At The Brink

Meanwhile, in Fantasy Land:

MW: Retail Money Is Rushing In From The Sidelines

"Investors are starting to believe that the economy will grow with or without Trump's help"

"There's a growing belief that it's fundamental versus agenda-driven. What's driving the (stock) market is certainly nothing that the White House has done."

ZH: The Last Time The Nasdaq Peaked One Month After S&P: The Top In 2007

Nasdaq with Percent of Stocks Above 50 dma:

Amazon tags $900

Close-up view of Amazon and S&P:

Loan Growth

Trump Today:
"We need to give Dodd-Frank (2008-era regulations) a major haircut, so that Goldman Sachs can make more money. That's what my Goldman-owned Cabinet told me to say"

Meanwhile, Trump's shovel-ready bullshit is really encouraging businesses to invest: