Friday, June 23, 2017

The Muppet Show. Is Ending...

The Fed, Wall Street, and Trump are all lying constantly. Then again, why stop now?

This week, Skynet did everything possible to keep the casino levitated at all time highs, while the entire rest of the world disintegrated in broadly ignored daylight. By sheer coincidence, the second largest IPO of 2017 priced this week, as risk was coincidentally "on" for growth stocks...

The S&P has gone nowhere for three weeks:

The healthcare sector led this week on hopes for Obamacare repeal which  in the event did not come to pass. Minor detail:

Outside of the imploding reflation trade, risk was firmly "on" in the growth side of the 'barbell' trade, led by Biotech:

The yield end of the dumbbell trade was firmly "off" this week as consumer staples imploded

Oil implosion was the big markets story of the week; however we learned today that speculative longs would enjoy more pain:

Banks were duly monkey hammered this week:

Overall, it was a week for speculation as Bitcoin ran up the right shoulder:

Biotechs led but the FANG internet stocks put in a decent show as well:

The following bellwethers tell the tale of the tape for where we are in the cycle:

JnJ had a very good week along with healthcare:

Target had a rough week

Northern Trust put in a good show for financial advisory stocks:

And yet bank stocks such as Wells Fargo lagged

Bed, Bath & Beyond imploded

Sotheby's auctioneers to the ultra-wealthy had a great week:

In short, risk was fully embraced, which was coincidentally very helpful:

Then again, as we learned with Snapchat, next week is another story...