Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
To show how perverse the market is at 8:15 AM the ADP monthly employment data hit and came in well above expectations at 201,000. Futures actually fell on the news since it might cause Bernanke to take pause on more easing. It’s quite an interesting era we live in.
Futures are still up moderately as investors await details from the ECB on the bond buying program to begin at 8:30 AM EST. At 7:45 AM the central bank decided not to move on interest rates, which was something that economists were mixed on what would be decided. I am not sure that there will be anything new from the press conference over and above what was very blatantly leaked to the press yesterday. Bottom line seems to be unlimited bond buying once Spain asks for help, and now we wait for the brinkmanship between Spain and the ECB over the next few weeks/months until said aid is requested.
Of course we still have global slowdown issues, with China’s market really showing no signs of rebound and almost all the cyclical sectors of the market not acting very well after the knee jerk bounce in late July/early August. That said many of these have been selling off sharply for 2 weeks now and a dead cat bounce should not be far off. But definitely a different character than the leading groups early in 2012.
EDIT 8:55 AM – not much different than was leaked yesterday thus far in the ECB press conference. Futures have come in quite a bit from early morning highs.
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