Was it just yesterday that this efficient market rallied on Boehner's return and news that Obama will propose a scaled back Democratic Plan B (subsection ii, para (a))? Perhaps - or did we dream it? Anyway, stocks are beholden to nothing but the next flashing red headline and so - a 7 point ramp in the S&P 500 is warranted for no news whatsoever of any consequence:
- *OBAMA TO MEET WITH CONGRESS LEADERS AT WHITE HOUSE TODAY
- *OBAMA SAID TO PLAN OFFER OF SCALED-BACK BUDGET PACKAGE TODAY
- *OBAMA PLAN SAID TO AVERT SOME OF TAX AND SPENDING CHANGES
The magical elevation did nothing but get us above VWAP and to unchanged on the day... enabling more unloads...
We hope it is becoming clear that every news-driven algo ramp is being used by professionals to unwind more of their biggest net long exposure in five years...