Stocks bounced back today, for no particular reason really.
The third GDP revision was inline at 4.6%, and increase over the prior 4.2%. This is GDP from the second quarter!
This is an artificial market. And the real buy and sell volumes, ex speculative poofery, are low.
The good news I suppose for Wall Street is that prices are therefore fairly easy to push around using leveraged instruments like the SP futures.
The bad news is that if we see a certain type and level of exogenous event, there will not be much to hold prices up once the day trading dip buyers run to the sidelines. And without human market makers managing the flow, the downdraft could be fairly impressive.
But timing something like this is almost impossible. This is more an occasion of knowing the types of trails which we are skiing, and not necessarily where and when there could be a specific instance of danger.
Have a pleasant weekend.
