THE RETURN OF THE BIZARRO MARKET
Courtesy of The Pragmatic Capitalist
Light volume, holiday, no news….perfect day to gun the futures market, right? I am reading all sorts of reports about mergers and oversold conditions, but there is simply no reason for today’s 2% move in the major indices. The futures were slightly positive heading into the open and for some odd reason the futures got gunned on 3 separate occasions at 9:45 CST, 10 CST, and 10:30 CST. I wish I could say that the re-emergence of merger Monday was the culprit, but the futures would have been ramping before the open if this were the case.
Adding to the confusion is the positive dollar which is being shunned by the equity and energy markets today. Tech, which is particularly dollar sensitive, is a market leader today. But no one is benefiting from the no news rally more than the banks which are now trading almost 3% higher on the day. If you don’t think the trading profits at each of the big i-banks and money center banks are going to be thru the roof again I suggest you head back to the drawing board. The bizarro market is back.
