Well, it was another bizarro trading day on Wall St. The DOW surged 160 points in the morning before giving up half its gains by the close. Obama came out after hours and said that the GDP will show negative growth in the second quarter.
Gee? Do you think maybe that info was leaked to Goldman an hour or two before the close as stocks pulled back late in the day?
You gotta hand it to the boys in the bond market. They pulled it off and got the auction sold today. The BTC was a strong 2.62:
Here is a nice summary of the treasury sales this week:
The one thing that sticks out to me here is how erratic these auctions were in terms of who bought them. One day its the primary dealers. The next day its the indirect bidders. This looks like one giant juggling act IMO. The problem is we all know what happens when a juggler drops a ball.
You gotta wonder folks, where is all the money coming from that allows the market to prop up both equities and record bond auctions? We all know it doesn't grow on trees.
I am very anxious to see what the money supply numbers look like as these auctions continue to sell. I can't help but think that the government is printing boatloads of money in order to make all of this work.
If this is the case, inflation is right around the corner. Notice how the dollar dropped hard today as the auction got done. I think that the more successful auctions that you see, the more pressure you will see on the dollar.
In fact, CNBC reported today that someone bought 100,000 contracts in the options market today betting that oil will DOUBLE from here. In my eyes that's an inflation/short the dollar play. I am wondering if it might possibly even be a dollar devaluation play.
Things are getting very interesting and continue to make less and less sense. I smell a big fat rat.
Watch GDP tomorrow morning. This could be a market mover.
One last thing today. Here is a great video on the HFT games we have seen recently including something very strange that happened this morning. Take a look. Karl did some great work here: