Is the ‘Trump Trade’ Already Unwinding?

And where the heck is Dow 20,000?
Over the last ten days, the markets have been jinxed, and everything changed direction. Stocks fell. Treasury yields backed off as beaten-down Treasury prices recovered a little bit. The much maligned dollar, after surging to a decade high, couldn’t quite get to parity with the euro, and then fell against the euro and yen. Banks got bruised. Even oil was down except over the last few hours Friday afternoon. And everyone has been feverishly waiting all month for the Dow to finally hit 20,000 any moment now. And everyone is still waiting….
The Dow peaked on December 20 at 19,975, a ridiculously small 25 points away from party-hat time. Everyone knew it would happen. In fact, it would have to happen because it was just a few decent trading moments away. But since then, Dow 20,000 slipped through the fingers like dry sand. It closed the year at 19,719, so 281 points below, after having been for a big part of the month within a hair of nailing it.
The S&P 500, after falling 0.5% on Friday, is now down 1.5% from its high on December 13. The rip-roaring Trump Trade since the Election has started to unwind (chart by Doug Short at Advisor Perspectives):

This post was published at Wolf Street by Wolf Richter ‘ Dec 31, 2016.