When the S&P was down at 1,100 no-one wanted to buy it that cheaply, and the market was getting slashed down 1-2% in minutes multiple times per day after every intra-day rally that took many many hours, yet was undone totally in minutes. Yet now at 1,250 the market is extremely bullish as it is severely struggling to fall even a few %. The best examples of this are on tuesday it had spent hours and hours slowly grinding down to 1213 level, then suddenly rocketed up to 1230 in 20seconds! This morning at 7am (UK time) the market had spent all night slowly going down to 1213 again, then suddenly jolted up to 1236 in a few minutes! Whilst i know the the markets are often illogical, what on earth could be driving all this extreme bullishness??
Referendum is most likely scrapped: http://finance.yahoo.com/news/Greek-PM-scraps-referendum-on-apf-1455838074.html
With the Greek farts everyone forgot about MF Global and the meltdown it could cause. Nice Job Greek PM...nice job...
Mutual Fund managers felt left out in last week's rally, most are viewing this as opportunity based on what the market did last week. If Greece pulls the monkeywrench out of the system, this thing will pop.
They hace decided by decree that the markets will not go down. You think I am kidding? Those sudden moves up that you mention are heavy buys orchestrated by central governments. You think this is impossible? Large private banks and governments are tied together in a very close way, especially in Europe. The money they throw in, is 'infinite'. It is taxpayer's money, loans or freshly printed money. They have to keep the EU scam up and running. This is the only political stance. If they fail to do so, the whole castle on which they have built 5 centuries of fortunes will collapse. It is not about socialism, capitalism or any other bullshit theory. It is about the wealth of a few families. If the markets sink, they will very quickly reveal the bankruptcy of the whole EU banking system. It is exactly the same situation of MF Global or Lehman Brothers.
I suspect we will see a sudden thrust upwards, SPX to 1290 or even 1300, soon. OTM options are your friend right now. Edit : To answer the OP's question, I bet only a few know the "fundamental" reason why. Even El-Erian expressed surprise about this on Bloomberg and he manages $1.3 trillion! :eek: Secret QE3, year-end mutual fund madness, Obama misusing the PPT to try and get re-elected, who knows?!
How on earth can what has happend in Greece (and yes the very latest developments) be anything other than extreme weakness though?? As all that has now happend in France and Germany are almost blackmailing Greece (its not actual blackmail since they dont legally owe greece anything), but they are just holding greece to financial-ransom by saying ''your country will go bankrupt in 4-5weeks unless we give you cash, but we wont give you cash unless you do what we tell you''. But that simply exposes that greece is a bankrupt country now and is only able to continuing existing because other countries are funding it.... In my view that shows extreme weakness.
markets are bullish, because the war with Iran is coming shortly. more billions to be made by U.S. companies.