Today marked the 6th consecutive winning session for the Naz. Without doubt, we are enjoying a “Santa Claus rally.”
In addition to that, many fund managers are walking up their positions, for end of year sales literature. Basically, they want prospective investors to see their fund is long [[AGU]], [[MOS]] or [[GS]].
One big positive for the market is the resurgence of liquidity, via sovereign wealth funds. A new one coming out of Saudi Arabia will manage 900 billion dollars. It’s like fucking monopoly money to them. Unreal.
With all that coin, it seems plausible that there will be a bid under many of the financial stocks. The zillion dollar question (clearly not to outdone by trivial billion dollar questions) is: How stupid are the Arab managers?
If I were them, I’d see to it that the insurers, like [[ABK]] and [[MBI]], go bankrupt. This way, I’d be able to go “jumpin’ jihad” on [[C]], [[MS]] and [[MER]], buying all of them for half of what they are worth now.
However, that’s just me. I’m somewhat evil. They’re much nicer than “The Fly,” without a doubt.
As for today’s light trading:
I enjoyed caffeinated moves in [[WBD]], [[CORS]], [[LFT]], [[AGU]], [[RIG]] and [[MVIS]].
Again, I cannot stress this point enough: use this low volume manipulatory rally to lighten up and set up hedges. The reasons why I believe the market will get flushed, during the first two weeks of January, are “time machine” related and, quite frankly, none of your Goddamn business.
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