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...
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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...
Chart: Bloomberg