Market Slams Higher As Corker Repeats Yesterday's Talking Points
S&P 500 futures (ES) jumped higher this morning, retracing a perfect 61.8% of the Friday afternoon plunge on the reiteration by Senator Corker (and perhaps some remarkably obsequious comments by Van Hollen - who has been so trustworthy in the past).
"I would bet my life that over the next very short period of time (that) 98 to 99% of people in the country are going to be rescued," Corker told CNN Chief Political Correspondent Candy Crowley.
The algos trading the futures, naturally, buy it hook, line and sinker. Only problem is this is from yesterday just as everyone was "cautiously optimistic" a deal would come from the Senate later that night, which... never happened. But hey: algos don't care about details. The bad news for Corker's numerous Wall Street sponsors is that his life may now well be forfeit should there be no deal in 15 hours, and all this "cautious optimism" was for nothing.
The initial ES ramp was a stop-run and then the algos switched to EUR to try and lever the ramp - it failed.
S&P 500 futures (ES)
EURUSD...ramp started later (not simultaneous with ES)