European and Asian stocks rose after the early scare from the latest Fukushima quake dissipated, with the global risk on mood spurred by another jump in crude, which was up 1% in early trading, with the commodity complex now enjoying its biggest three-day rally since May, after Nigeria signaled optimism that OPEC will agree a supply-cut deal next week in Vienna. S&P futures are up 0.3%, with the cash index set to open at new record highs.
After soaring by 1,500% in the past five days for reasons that remain largely unknown, insolvent dry bulk carrier DryShips managed to sucker in a lot of retail investors, a process which continued earlier this morning when the stock was up another 40%. However, those same retail investors may find themselves the proverbial terminal bagholders, stuck unable to take profit as a result of a T12 trading halt in the stock which was requested by Nasdaq following an "information request."
"There is clearly a ‘factor crowding’ issue at play here (as there was at start of year) — whether it’s ‘style’ or previously mentioned ‘sector leans’ or ‘macro input’ — these market-neutral strategies are not supposed to see moves like this over multiple days (sorted by 5-day % return), let alone in a single day"
Yesterday we wondered how long the broader market would ignore the carnage taking place across emerging markets, instead focusing on making the Dow Jones Industrial Average both great, and all time high, again. Today, we got our answer.