The following charts illustrate today’s performance of “The Four Horsemen” of our Armageddon trade, which we posted earlier. That is, the markets were monitoring for large concurrent moves which would signal a loss of confidence in the U.S. government and markets.
Today’s directional move in each of the four confirms market worries, but, given the relatively small size of the moves, traders and investors are not yet ready to hit the panic button. In fact, the S&P500 almost got to back to even for the day before the politicos came out around 2 PM.
If you’re gonna panic, be sure to do it before everyone else. Many already have and that partially explains why the market is so resilient, in our opinion. Stay tuned.
(click here if charts are not observable)