mdmrjsds'  Instablog

I've noticed that lately there seems to be a trend for stocks to recover in the last hour of trading, especially just before closing.  This seems particularly noticeable on days when the treasury is selling bonds.  I wonder if the money is immediately being sent to FOT (friends of treasury) for injection into the stock market.  This would be a broad based way to help both pension funds and insurance companies that are way underfunded for their liabilities because of the decline of their stock portfolios.

I have no special information, just noticed the pattern and put it together with the avowed intentions of the Fed and Treasury to do anything in their power to help the financial sector. I interpret this as meaning that they consider it easier to ask forgiveness than permission.

The reason I find it anomalous is that the fundamentals are so bleak that I experience cognitive dissonance when I see this happening.  Like seeing rain in Southern California or the San Francisco Bay area in the summer time.  The institutions are supposed to be the *smart* money, right?  Are they just carried away by wishful thinking?  Or are they seeing something that I'm missing?  Is it short covering?