Still feeling that "something else" may be going on regarding the S&P. While it didn't break down yesterday, it didn't break out as I thought it might. Futures turned around strongly in the wee hours of the morning and could lead to higher prices today. There is a volume shelf around the 1846 area that I have my eye on. I'm holding some SPY 184 calls and will likely dump them in that area. If there are new highs, great. I'll position to buy puts.
Asia was mostly down last night while Europe is mostly up. The Chinese CPI figures were below expectations which could have coincided with the overnight rally, giving the impression that the PBOC has more room to ease.
In Europe, Draghi left interest rates unchanged. No surprise there for a region slipping into deflation. Pundits are cheering record low yields in Italian bonds. Little do they know it could be a white flag of surrender.
Speaking of white flags, the biker jacket has just gotten a makeover. The WSJ just flashed a social mood alert. "Everywoman Biker Jackets" have hit the runways. They're white. "Make vroom in the closet. Designers tame the rebel motorcycle jacket and sell the idea that it is a must-have seasonal staple."
So basically social mood has surrendered to the surreal nature of the hyper-stimulated, hyper-hyped asset markets. Forget the black and white balance of September Vogue 2013. The biker jacket has been whitewashed. Have we?
But wait, there's more. And it's much worse. It seems that either the fashion world has gone crazy, or that Mark Zuckerberg is now a trend setter as far away as London. Say hello to the $300 luxury hoodie "designed just like a suit."
All joking aside, this could be a high-water mark for social media, the Facebook, and for Zuckerberg himself.
The irony is the name of the new brand: L'Estrange.
Strange days indeed.