Editor’s note since the time this article was written, the WH has confirmed that indeed Steve Bannon exit is official.
These daily drop offs (or slides) are becoming more and more frequent as our US President digs his holes deeper and deeper. Yesterday was just another example; off 1.5% via $SPY. Last week was a 1% drop before rebounding to new highs. Each time, we and the collective world sits on the edge of our seats asking if this time is different. Each time, it looks like this is finally the catalyst to get volatility back to somewhat sane levels.
But through it all – there has been an undercurrent that this bull market has no interest in what is happening in D.C. That the uncertainty in D.C. isn’t playing a role in the market. That is – until we took a stroll through twitter this morning. When the pundits and top financial media firms speculated that the quick surge in stocks this morning came from reports that President Trump is going to fire controversial senior advisor Steve Bannon.
— CNBC (@CNBC) August 18, 2017
The stock market seems to like the idea of Bannon getting fired. pic.twitter.com/0aeI6pljJZ
— Joe Weisenthal (@TheStalwart) August 18, 2017
So, which is it? If The White House chaos does not play an influence until all the sudden it does? We get it, it’s complex and perfectly normal for news to one day rattle the market and another day have no effect. We just wish Twitter had a ‘market movement explanation’ filter to weed out some of these memes every day. The truth is – the ‘market’ (and there’s more than one, by the way) goes up when there are more buyers than sellers. That’s it. The rest is noise.
Article by RCM Alternatives