They took a dive as the US Supreme Court upheld the Affordable Healthcare Act, contrary to expectations. Robert Reich called this one and I think his reasoning is substantially correct. There were a few more political angles in that one that he allowed, but it was good enough to trade.
The stocks rallied in late afternoon, driven by algo buying centered in the SP futures. It looked like a tape painting exercise for the end of the second quarter as I had cautioned. They have struck a level and will seek to hold it into Friday's close.
The wiseguys sat on the metals to lessen the damage to their results from their naked short positions while they drove up prices on stocks in their portfolios.
Gee Jesse do you really think they would do that? says the man wearing the 'kick me' sign on his back.
Are you kidding me? After the revelations we have had the past ten years, including the long term and cavalier fixing of LIBOR, one of the cornerstones of the western financial system? How many shots do you wish to give these jokers at destroying the real economy?
Most traders' empathy, outlook, and interests end around their belly buttons. and their attention spans and planning horizons are shorter than that. Sociopaths are considered insufficiently ruthless for the more sophisticated firms, who ripen them over time into utterly self absorbed narcissim, if not borderline psychosis.
This is why I always laugh when 'serious people' in the media and the Congress turn to traders and speculators for public policy advice when it comes to financial regulation. Why not ask a grifter or a loan shark what they think?
Tomorrow's trade will probably be choppy and with a light volume, as the adults leave early for a long weekend at the beaches. There is late breaking news that the European leaders have agreed to some bailout package of 120 Billion euros, but details are scarce.
See you Sunday evening. Go Italy!