As always MVIC, very well put! Share prices are just one small "piece of the puzzle" in the leveraged derivatives environment. It's as if everything has been securitized. Many high yielding hedge fund strategies are akin to naked put selling. IOW's if one leverages a carry trade they become a de facto short put on that spread. It's been 5 years since these relationships have seen even an iota of trade on the bid. No one has been compelled to liquidate with force. That's about to change. Bernanke walks a tightrope. Prices and wages are firm but there's little elastictisity in Carry World. The inverted curve manifests danger in many subtle ways. Suffice to say, low borrowing costs are paramount when one is trying to make these plays.
boring, looked like we were going to open off 50 + points, down 20 then down 30 followed by a quick jump to single digit losses.
We might see some green pretty soon. I'm on the sidelines, waiting for a good discount on short opportunities.
I could be wrong, but I think the influx of capital relates to the curbs that are put into place when the markets plummet. Such was the case yesterday at the opening bell, when the Dow immediately dropped 200 and the Nasdaq, 50.
the question is wether is comming from the FED's presses or from brokers and investors buying "cheap"
I would like to read more as well. What does the figure actually mean? The Fed bought $9B worth of securities yesterday? Stocks alone? How do they then decide when to sell?
MVIC is refering to Fed Open Market activities. i.e. the purchase and sale of TREASURY securities. Oft the presumption is that some of the 9b sold by dealers will wind up in other markets, like equities. At worst, it's just the Fed's way of providing a dose of temporary liquidity within the macro policy of being a bit restrictive.