QE3 Levitation Day 3... Brings the DJIA To Positive For The Year, In Comic Contrast With The Rest Of The World
And so it continues, as it was outlined yesterday, and the day before. There is little to add here: 50 ES points in three days on substantially below average volume (red area chart), robots gunning for VWAP, and nothing but hollow expectations for QE3 despite the clear quandary for the Fed that absent a clear deflationary threat, read a plunge in stocks, it will be very difficult for Bernanke to sell easing to the dissenting votes. The important thing: unlike every other relevant market in the world (Belarus may be a notable exception), the DJIA is now green for the year. In the meantime bonds continue to ignore the whole move in stocks. Of course, if this is just a career protection rally for the end of the month, the reconnection of stocks with gravity tomorrow will be painful. Alternatively, gravity will be even more painful if the Fed does end up disappointing on September 21, which it may have no choice but to do if stocks price all of it in by then.
And an even more amusing relative volume chart: the entire 100 point ES move since the lows has been on below average volume.
And here, once again, is why America is number one... in market manipulation.
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