This could be the worst tape of them all, with absolutely no place to hide. The Dow is being taken to the woodshed, off by nearly 700. All of the defensive areas are down 1 to 1.5% and the sole outperformers are in solar, since both Trump and Harris like it.
The huge standout is the banks. After the $JPM plunge yesterday you’d think we’d get a bounce, but not even close. The $XLF is hammered for 2.3% and the $KRE is off by 3.4%. The Russell is lower by 1.85% and breadth is an abysmal 28%. We have gone straight to hell from the open, all red candles, nothing but pain.
The reason, apparently, is Trump lost the debate. To me, that makes no sense, even if it were true. No one really gives a fuck about the debate and minds were not changed. But that’s the way it was perceived and that’s why Trump sensitive sectors are getting railed.
Unfortunately, I have a portfolio filled with defensive stocks and those aren’t being defensive today, in spite of rates dropping again. I will hold these for another day to see if we turn up tomorrow and maintain an 11.5% hedge in $TZA, but still down 94bps for the session.
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