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THE RETURN OF THE BIZARRO MARKET

Light volume, holiday, no news….perfect day to gun the futures market, right?   I am reading all sorts of reports about mergers and oversold conditions, but there is simply no reason for today’s 2% move in the major indices.  The futures were slightly positive heading into the open and for some odd reason the futures got gunned on 3 separate occasions at 9:45 CST, 10 CST, and 10:30 CST.   I wish I could say that the re-emergence of merger Monday was the culprit, but the futures would have been ramping before the open if this were the case.

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Adding to the confusion is the positive dollar which is being shunned by the equity and energy markets today.  Tech, which is particularly dollar sensitive, is a market leader today.   But no one is benefiting from the no news rally more than the banks which are now trading almost 3% higher on the day.  If you don’t think the trading profits at each of the big i-banks and money center banks are going to be thru the roof again I suggest you head back to the drawing board.   The bizarro market is back.

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