So we now have a clear pattern of news-flow and how it relates to markets. That may mean it will no longer work, but here it is anyway:
Since the equity markets are a cesspool of inside information-flow, markets will drop in front of bad news and then rally on the actual release of that bad news. The same holds true for good news, but less so in this Central Bank Controlled marketplace. I know it sound obvious, but after this morning’s action, it should be reiterated.
Are you surprised by this mornings action after the JP Morgan news? Most were, but nothing surprises me any more. The Costanza market remains alive and well!
If you enjoy the content at iBankCoin, please follow us on Twitter
Too bad this only applies to the broad market and doesn’t apply to the individual names that direct the news flow. I would have liked to see JPM rally on this news and blow up the guy who funded his retirement yesterday via JPM weekly puts. Because we all know the SEC isn’t going to do a damn thing.
Once the news happens worst case scenario is priced in pretty much. The sellers are flushed out of JPM and forced to capitulate at oanic lows. buyers are only going to step in at significantly lower prices and they do so in size.
Treasury market still painting a different picture. Not to mention Economic data today from India and China sucked.
had to expect a bounce here, just to prove to the world how resislient the US market is.
IMHO this is far from over.