Yesterday, the sage deal was supposed to anchor the financials but they got sold off; today the market found legs from the "tech" sector of all places with money going into the goog and apple.

Will it work or will it reverse off like the bac stuff?

Victor Niederhoffer writes:

One is reminded of the classic reaction to assassinations and crashes. First a terrible decline, and then starting the day after, a rise to on average where the decline started from with much variability.

Gary Rogan writes: 

It's pointless to anthropomorphize the market, but still enjoy imagining this reaction: "No QE3? How horrible, we can't have that, off with their stocks! Wait, come again? No QE3? Hm…could it be GOOD? Yeah!!!"

Victor Niederhoffer replies: 

A hypothesis was rejected. The market can not go up unless we get qe3. + all the Gavekal boys and other smart analysts who correctly figured he wouldn't dare to challenge the Texan had a minute to cover at 1133 ish but then when they realized that the market is rational and does not respond to cardinal events but to meals for a lifetime, they had to cover in avalanchian fashion. + the threat is always better than the execution. Now, he can hold out the possibility of "maybe" I will. From Annie.

Gary Rogan writes: 

And yet the immediate "mainstream" analysis I saw from Reuters was "when parsing the speech the market was disappointed to see no QE3 but when it realized there is no concern for inflation and thus no outright rejection of QE3 it went up on the possibility", which just goes to show for the umpteenth time people see what they want to see in anything even mildly complicated. That's why the same facts lead to different conclusion about say Global Warming depending on one's disposition.





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