“Pick Your Poison”: These Are The Market’s Three Negative Narratives

zerohedge.com / by Tyler Durden / May 11, 2017 6:15 PM

Having turned over the past few months from reflationist, to increasingly skeptical of the whole reflation impulse scenario – mostly on the back of China’s infamous credit impulse crashing – RBC’s Charlie McElligott takes a look at the three “negative narratives” that are gradually emerging for the markets. But before listing them, here is his latest summary of where the increasingly more confused market finds itself:

From “The Battle Of Who Could Care Less” by Charlie McElligott

  • My ‘macro range-trade’ thesis continues to be representative of the lowest-conviction market I’ve seen in a long-time, with ‘risk-sizing’ at VERY muted levels.
  • Sentiment “paper-cuts” are mounting with risky-assets sitting near recent nose-bleed highs, making them ripe for today’s modest draw-down into poor liquidity.
  • Negative client narratives are building largely around this idea that 1) the Fed is tightening (staying ‘on message’ with hawkishness); 2) China is deleveraging (PBoC has ‘room to run’ in light of recent + data overshoot); 3) the ECB is pivoting ‘less dovish’–all while 4) the global economy is mean-reverting ‘slower’ following the outstanding expansion since last Summer.


Read more ... source: The Bitcoin Channel

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