Whoa! The pundits are saying...
"The markets had 'basically' no reaction to Pres. Trump's speech....."
No. "Wrong."
While the S&P has barely moved, my SEP22 SPX positions have dropped a goodly 10% in the last 10 minutes. WOOT!!
I'm short at 2520/30, and on bottom, at 2490/80 and 2485/75 -- about evenly. So, *roughly*, both top and bottom sides just exhaled a nice, relaxing "Ahhhh-hhhhh."
Vz: Recalling you're not US-based, "eh"? So... As part of the FED's handling of the "financial crisis," they commenced buying US Treasuries and other securities as a way to take risk-free/low-risk securities off the market, and leave a *smidge* of portfolio-usage for equities (and other market-risk) securities, and thereby putting a floor under the financial market with something besides a lower interest rate. (Ooop -- taken to 0%.) All these securities took the FED balance sheet from a relatively low amount (which I totally forget) to upwards of US$3T-US$4T. "Big money."
Thus, with "The Unwinding" of that balance sheet, the low risk market would need to absorb trillions of dollars of asset, *without* causing lower-risk bonds to sink, 'widows&orphans' lower-risk equities to follow, and the whole capital market swoon again. {!!!}.
Hence, the worry.
But I haven't seen this given much attention.
But then too, LOW volume today.
Sheeesh.
(So, how'd I do?)
[HA! I am such the academic. Speedo said what I wished to, in a sentence. That is just embarrassing.]
