Monday was bad. Pretty much across the board.
Here’s a ton of commentary and lots of potentially useful visuals on Facebook, the Nasdaq, and tech volatility.
Additionally, I’ve included some commentary on liquidity, market structure, and a recap of the Fed and political risks.
Well clearly, Monday could have gone better.
Over the weekend, both here and over on my site, I tried to paint a picture of a market that faced at least three daunting headwinds but simultaneously enjoyed a handful of potentially supportive technicals.
On the headwinds front, there’s the political turmoil in D.C. which escalated materially on Friday evening with the firing of former FBI deputy director Andrew McCabe and intensified further on Saturday and Sunday as the President and one of his attorneys took aim (verbally) at the special counsel probe. Additionally, there’s still quite a bit of tension in the air regarding the recently announced tariffs and the prospect of a tit-for-tat dynamic that eventually mushrooms into a “hot” trade war. Finally, there’s the Fed meeting, and more importantly, the new dot plot which at least some folks think will reveal a shift in the median 2018 dot, tipping four hikes as opposed to three.