With trade war between the US and China set to begin at midnight on Friday, the market is taking on a oddly relaxed attitude, with S&P futures rising back to where they were before the waterfall drop just before Tuesday's close.
"All of these products were born of central bankers with no self-control, individuals who’ve long since demonstrated that they are lacking in common sense. The fact is, they’ve gorged together and fed each other’s risky markets in concert. Now comes the time for the real discovery, the revelation of the feedback mechanisms that will infect each other’s markets and economies."
After seven years of utter devastation and bloodletting, a consensus has emerged among all the belligerents of the Syrian war to de-escalate the conflict, except Israel which wants to further escalate the conflict because it has been the only beneficiary of the carnage in Syria...
While the general risk-on rally across global markets persisted for a third day amid sliding volatility, the rally appears to have lost some steam with Dow futures lagging after last night's disappointing IBM revenues, which in turn may have capped the S&P ramp that started on Monday.
Despite a very explicit warning by Goldman's co-head of equity trading that the "regime has changed" and that instead of "buying the dip", investors should be "selling-the-rip", so far this morning a global BTFD relief rally has been unleashed from Asia to Europe and the US as traders welcomed a rare respite from soaring volatility.
The global selloff that started on Monday, resulting in the biggest drop in US stocks since September, accelerated overnight and this morning world stocks and US equity futures are a sea of red, even as the US dollar has resumed its drop.
When markets open for trading today, the S&P will rise above 2,800 and the Dow Jones will not only make a new record high, it will do so in historic fashion with just 12 days needed to move from 25,000 to 26,000, the fastest 1,000 point move in history.