Volume Recap: Same Low Volume, Different BTFD Day
The chart below confirms what we have all grown to love and expect from the robotic algo stock trading bias, on days when volume does not exist. The trade here is obviously tomorrow's NFP, which is at a critical junction: should Bernanke wish to proceed with QE3 this may be his last opportunity to doctor the employment data to start a smooth transition toward further monetization expectation. Should NFP be a blow out, the next NFP report will be in April and it will have to be truly abysmal for anyone in Congress to buy that further monetary intervention is required just two months ahead of the end of QE2 in June. On the other hand, Bernanke wants stock prices to be as high as possible at the point when the transition to a QE-free environment occurs, assuming of course, anyone at the Fed believes the economy can ever exist without a daily dump of $5-7 billion.
And the chart for all the dollar fans:
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