Yesterday, stocks climbed back from under pressure, closing nearly flat after an earlier shellacking, ostensibly due to the FBI raids of hedge funds. The market action was caused by Traders surprise in learning that some Federal agencies plan to continue enforcing laws, despite the best efforts of bank lobbyists.
Will they be able to repeat that trick today?
Tensions are high following the shooting skirmish between them Koreas. Since this event is 5,000 miles away, and does not involve any banks, it will probably fade rapidly, as it doesn’t really exist unless it trades. “We were watching to see if steel or copper futes rallied, but the shells fired were insufficient in number to really move the needle,” said one trade, who didn’t really exist. Were it to go nuclear, Uranium futures would rally. Traders are comfortable with that outcome.
Perhaps, but as Lily Tomlin once noted, “No matter how cynical you get, it’s impossible to keep up.”