Our source at broad and Wall emails us with this account of trading desk activity
Desk color: risk-on day. Early on, there was a lot of covering
but some (small) vanilla buying is starting to emerge as we head into the
afternoon. The sentiment remains skeptical, w/many people poking holes in
today's actions (a lot even think the US$ swap rate cut was in response to
an imminent crisis that regulators were looking to forestall). This is a
change from back in Oct where there was more faith in European
policymakers. All that said, the price action can't be ignored and traders
continue to ask whether we are seeing the start of another Oct-like hope
rally (that one wound up being worth 20%; so far, this one is +7%). There
is some chasing occurring in those names seeing the biggest moves (esp. the
steels/coals) but overall there is very much a macro focus w/people
buying stocks generally and correlations staying very elevated. People are
watching 1250 and then the 200day MA (1265). We are likely to see our
2nd 90% up session in the last 3, recall we had 3 90% down days in 5
session heading into Monday...
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