The major indexes hit intraday records before closing lower as earnings season kicked into full gear, with JPMorgan Chase and Citigroup reporting results.
It’s been almost a year without a 3% drawdown in the S&P 500, 2nd longest run in history. 10 more days for the record. Some would take the other side of that trade and get really short. I am sure some are, but if they are wrong about a directional move lower, than that only adds fuel for the bulls.
The bulls have a huge edge here because no one in their right mind wants to be on the wrong side of tax reform if it happens. As I said the other day, even a modest tax cut across the board could add $10 to S&P earnings and don’t forget the 3 trillion that will get repatriated. How many stock buybacks do you think we will see with all that loot? Capital spending and hiring are all positive by-products of all of this.
Many of you got stopped on IMGN which has been acting poorly since they announced their secondary. I have some left and as you can see it is on support. If it doesn’t bounce Im out.
