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.