Holy shit, what a week so far.
Yesterday morning the markets took off. No explanation other than that there was a teeny, tiny correction last week. And today, Tuesday, we have another “off to the races” day. The SPX gained 20 full points in literally 2 hours. And it was the broad measure of the markets that rose, led by financials, not the stocks everyone loves.
Remember, the end of the fiscal year for many mutual & hedge funds is October 31. So there is some positioning underway.
The big news through is that Pandit and Havens, the CEO AND the CFO of Citibank have been stepped down just a day after “good” earnings. And just 2 weeks before the Presidential election. Hmmmm, he and Geithner will probably swap jobs.
The reality is that the markets have $85 billion a month to play with this year and $40 billion per month starting next year and into infinity. And financials are leading the way. You just can’t fuck with that kind of money.