...during the last 5 minutes of trading the SPX 500/the Dow/the Russell 2000 all pushed through their respective Wednesday's (27th) intraday High;
...before getting carried away with bullish sentiment, today's charge needs to be confirmed with a close above SPX 500 *925 (May 20th High), further indicating the continuation of the bear rally towards the SPX 500 target *950/*1000 (+);
Trading Strategy: sideline (safest) till confirmation; hedge: stopped out and now neutral with very tight down side stops to protect equity exposure (I have my reservations about this move)
Transparency????
As for today's market close, with a literally parabolic jump in the last minute of trading, if anyone still thinks this market trades based on anything resembling normal behavior (unless someone had a very Jerome Kerviel-esque fat delta hedging finger or one/two moderate/large quants who had a huge index hedge imploded), I have some BBB+ rated CMBS to sell to you at par. One culprit could be hiding in the huge drop of agency trading, which this week dropped to a several month low of 1.875 billion shares.
(see attachment 1)
So as essentially no institutional or retail clients are trading any more, it is just a few desperate computers trying to front run each other. And, of course, for the biggest beneficiary of this PT principal bonanza, look no further than the chart below.
(see attachment 2)
Going back to today's ridiculous close, the chart below shows it all: the complete tape painting volume spike at the very end of the day speaks for itself. And as computers now simply issue forced stock recall orders to each other, painting the tape wet with manipulative intent and volume spikes into the last 20 minutes of trading every day, their human creators are left on the sidelines, trying to outshout each other as to the reason for why the market keeps rising while the economy keeps tumbling.
(see attachment 3)
Is there ever going to be any transparency in this market again?
Kind Regards