Goldman Explains Today's Futures Ramp
In attempting to validate today's futures ramp, brought to your courtesy of government motors and The Sack, Goldman presents the main tangential factors, good enough for a media headline and adjoining irrelevant plotline. Amusing nonetheless.
1. Ireland is trading 40 tighter this morning. headlines suggest some resolution is nearing (EU-IMF loan). Alongside this in the sovereign space, Spanish 10's and 30's cleared well enough.
2. Some relaxation or dissipation of near-term China tightening fears. SHCOMP tested and bounced off the 50-day MA.
3. We have seen significant directional buying of European index futures (DAX, SX5E) and good overnight volume in ESZ0.
4. I can't resist. NKY closes above the 10k level and the 200-day MA. see attached chart of the banks.
5. The key level today for ESZ0 is 1193.50 -- the 21-day MA -- a move up and through should bring CTA covering and would basically close Tuesday's gap.
So there you have it - everything explained without one mention of Liberty 33 and/or Citadel.