Was it the weak pricing of the Citigroup (C) secondary that reminded people that even with all the money pumping in the world, there’s technically not an unlimited amount of cash out there for the taking?
The market’s shown impressive resilience — ignoring Dubai, Greece, and Austria — all because it’s had faith in liquidity. That’s the one silver bullett that could kill the rally dead.
Overnight Asia tanked, with Shanghai down 2.3% and the Hang Seng down 1.2%, and European markets were lower is well, with most off less than 1%. Gold is back touching $1125/oz. and US futures are down with everal hours to go before the bell.
There’s only a few days left in 2009, and the market’s shaping up to be an epic battle now between bulls, who have two things favouring them (liquidity, and all the money managers playing catch up) and the bears,who can point to any number of calamities and cherry-picked stats indicating a double dip.