In another replay of the Low Volume, Big Move Up play book, the Dow is again up 100 points, or .85%, while the SPX is up .58%, the RUT is up .94%, the Trannies up .50% and the COMPQ is up 1.03%. As my old friend and office manager, Captain Gatorbait, used to say, "if this was easy, we'd have 3rd graders in knee socks doing it".
I have looked around for the last 30 minutes, trying to find a reason for this move today, and I really don't see one. Oh, wait!. $9 billion in new money, a result of the Fed's almost daily monetization of the national debt. This time with the re-purchase of the just auctioned 2.75% due 12/31/2017 note that made up over half of this current POMO. All those new dollars looking for a home... .. and none it is going to go into new equipment or new plants or anything useful like that. Nooooo... it will go into new purchases of AAPL
The Momentum Change signals issued last week are still in effect..... until we either get lower prices in the Q's and the RUT and the SPY, or we get stopped out.
Sigh.
Best To Your Trading!
Bill
Hi Billl, thought you might like to know that IBM holds 9.9% of the cap weight of the S&P500 and IBM is up 2.63% today by itself.
ReplyDeleteCap weighting can be found here:
http://www.indexarb.com/indexComponentWtsDJ.html
Also up are MMM 1.1%, UTX 1.58%, BA 1.28%, PG .96%
All five together move 29.4% of the S&P500 index. The other 60% of movement is accounted for by 495 other stocks.
Daniel
ReplyDeleteThanks.. you point out exactly how easy it is for the PD's to move the indexes....they don't really have to spread the money around to force the indexes to comply with their desires. All they need are algo's flipping about 50 stocks in their principle accounts and viole... new highs. We used to call that "painting the tape", but now the tape is just another arcane symbol of market interest.
Bill
Bill
Bill
Sorry, PD's?
ReplyDeleteDaniel
ReplyDeletePD is Web shorthand used on financial sites for Primary Dealer, firms like Goldman, Morgan,etc.