I was struck by a graphic I saw on ZH last night:
In short, this is showing that virtually all the gains taking place in the stock “market” are happening while everyone is sleeping. And, after a few moments of thought, I realized how much sense that made. It’s far easier and cheaper for the Feds (specifically, the PPT) to goose up the market nonstop when there’s hardly any volume. They just keep the algos and their buying pressure on through the evening, and the normal markets the next day at a “permanently high plateau”, so to speak.
We witnessed it quite clearly over the past few days. The day sessions (yellow) are nothing. The green sessions (overnight) is where all the buying is. It’s a fake market, and a fake market on the cheap.
All those trillions of dollars of Powell-bux have worked wonders, however. In the past two months, during one of the worst economic calamities in history, the ES is up 40 goddamned percentage points. It makes 1999 look sensible.
And in cave you haven’t vomited yet, be sure to check out this article which shows that the permanently smug Barry Ritholtz and “Downtown” Josh Brown (a CNBC fixture) got a free handout from the government for their $1.3 billion fund. How on earth can a group who has been so steadfastly bullish and mainstream need a handout, for God’s sake? It makes me sick.
