1. Well done so far for the manipulators who are forcing the very short market into a short squeeze just for the window dressing season. It might get complicated going forward as the New Moon today is not benign and should mark the current high as the next days more negative patterns kick in as well. We will have plenty of volatility over the next 2 weeks and should lead to another test of 1100 SPX with new lows before another rally can be expected. Just lets make a quick calculation lets say for any easy calculation the US fund managers are running 10 tril of assets with a fee of 1.5 yearly that is 0,375 quarterly and they managed to lift the market by 10% or 1 tril that would make a difference of 37.500.000 ( roughly 38 bil) more of income. Well I guess for that kind of money you can spend a few billions to make it happen plus as markets would drop more redemptions besides asset value loss would take away future income. It is easy to get some newsreporters and bribed polticians to make remarks which gather rumors and momentum for a brief rally plus to spend some money to get it going by buying the market. That was just half of the truth as the 38 bil extra income for fund managers will be matched by some very big returns for the Sellside , the brokers as they make big time commission in this window dressing season and are happy to front run the window dressers in order to get the squeeze going.
All the markets continue to bask in the glow of the new improved EFSF. From a low of 1115, the S&P futures are now trading at 1175. A pretty impressive 5% move. Stocks in Europe are doing even better and credit is following along. By now I would have hoped to see some details of this alleged new beast that EFSF has morphed into. While I search for detail all I could see, so far, are denials by Germany and Spain, some support from Austria, and additional rumors of what is to come. Every European politician outside of Germany can say this is a great idea, but if the money man doesn’t go along, is there really a deal? This isn’t a democracy, and only Germany controls German money. There was a brief headline that this new plan could cause S&P to downgrade Germany and France. As a back-up plan, there is talk about letting the EIB do the heavy lifting. Just in case the world wasn’t already controlled by enough 3 letter entities, welcome the EIB to the IMF, ECB, and FED party.