After yesterday’s absolutely comic session, I am in “ready for anything” mode this week. (And when I refer to yesterday, I am referring to, among other things, the market exploding higher when the Chinese delegation literally announced that they were willing to agree to the anything that both sides agreed on.).
Thus, I went to sleep last night when the ES was up double digits. And now, having awoken to a new day, it is down double digits, since the nauseatingly I-am-so-sick-of-hearing-about-it-for-two-years Trade Talk Optimism has yet again flipped to Trade Talk Pessimism.
In turns, bonds are strengthening, although they haven’t quite reached escape velocity yet (it would probably take the Chinese delegation hopping on a jet back home early to do that).
Most important to my eyes remains the bank sector, the KBE, whose thrusts higher seem to be losing energy every time. If the surge we saw recently is “all she wrote”, things could start to get interesting.