The collision of global markets and social mood

Wednesday, September 12, 2012

News As Meat

Sorry, but my first thought on hearing the sad news out of Libya this morning was Lusitania. The timing is suspect so close to 9/11, the news stories contain too much red meat, and it feels like a staged event meant to drag us into supporting further confrontation in the Middle East when we should be out of the Middle East.

Futures are up. Another example of the fact that news does not drive markets, while most observers wonder how the market could go up after bloodshed.  Until 1428.98 is broken on the cash S&P, 1440+ is possible.

The German high court backed the EU rescue fund with minimal conditions.  I would've thought the futures would be higher, but they look choppy overnight.  Perhaps the market is getting tired.

There is also some meaty "news" regarding the Fed. According to almost two-thirds of economists in a Bloomberg survey, the Federal Reserve is likely to announce a third round of bond purchases tomorrow, while also extending the duration of its zero-interest-rate policy into 2015.

Clearly the stars are aligned for a shot over the moon.  But perhaps after the S&P finishes whatever triangle it is forming and then makes a new high, the chips come off the table now that it's fully valued by the majority on Wall Street.


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