Moon Kil Woong

This Rally May Have Legs - Bespoke

The market may have legs but its feet are made of clay. What we need is fundamental indications that the economy is turning, not $1 trillion dollar market stimulation packages.

A positive sign is that at least they are trying to reform the derivatives market a year late and trillion dollars short.

Friday's Job Loss Report: As Bad as It Gets?

LOL to start a war in Iran would be total madness, might as well worry about war with Russia too. As for the market pricing the jobs loss in, I think they are just eager to see another government givaway. As for me, I think a drop in the market is better than silly market jumps led by bigger losses later. It's best to price it all end and then we can work off the lows. The slow erosion is painful and will hurt the market worse in the long run.

If you look at Keynes closely, you will see, stimulous helps the market once it has hit a low and can't find a catalyst to start up again. It was never meant to stop a de-leveraging. So I share the author's sentiment. But I'm more likely to say, it's inevitable to get worse with government intervention.

Was Friday's Rally Just a Hedge Fund Short Squeeze?

I like your assumption. Only program trading can have such a high correlation. I assume it was covering of SPoos bets in fear something weird may happeb over the weekend. And it did, the SEC issued orders that banks can declare any value they want to to illiquid paper. That means you get 100% no transparency again. When the market is looking for trust, they shovel us black boxes that you can't open until Christmas 2039. Hopefully, by that time we will be out of the muck they made.