Stocks Surge As Algos Finally Catch Up With Six Hour Old News

Curious why algos suddenly are buying because other algos are buying because other algos are buying, pushing the S&P higher by 10 point in virtually no time?

Simple. It appears at least one vacuum tube decided to scan the news archive, and fell upon the Politico story from 7 AM Eastern which said that the Republicans and Democrats had met in a secret meeting.

To wit (from 7:38 am, or about six hours ago):

House Speaker John Boehner and Majority Leader Eric Cantor quietly met on Wednesday with House Minority Leader Nancy Pelosi and Minority Whip Steny Hoyer.


The meeting, held in Boehner’s (R-Ohio) suite of offices in the Capitol, comes a week into the government shutdown and eight days before the Treasury Department says the debt ceiling will be reached.


“Reps. Pelosi and Hoyer asked for the meeting, and as we’ve stated publicly, we’re willing to meet with any Democratic leader who is willing to talk,” said Michael Steel, Boehner’s spokesman. Pelosi would not comment.


After the meeting ended, Boehner refused to comment on what was said, or on anything related to the shutdown or debt ceiling hike. He then went to the House floor and delivered a brief speech chastising the health care law as a “train wreck” and detailing the glitches that have plagued the rollout of the new Obamacare exchanges since Oct. 1.


“This is why we need to sit down and have a conversation about the big challenges that face our country,” Boehner said on the House floor.


There has been absolutely no movement toward finding a solution to reopen government and lift the debt ceiling.

Well better late then never: and since stocks are soaring, any impetus Congress may have had to do a deal, is now gone.

Catch 22.

And of course, when one sees an entire market driven by momentum on what is speculated to be a rumor, when all it really was is the regurgitation of news that is nearly a quarter day old, what can one say but... efficient markets!


No comments yet! Be the first to add yours.