The inability of this market to sell is rather impressive. It’s so consistent that you might get the impression that it’s more about short covering or the ongoing quant bloodbath than any fundamental reaction to the news.
Because there’s no particularly good news out there. Default rates on credit card rates and prime mortgages continue to mount higher, Morgan Stanley is losing money, and a range of corporate earnings were only ho-hum.
Zero Hedge reports that traders are finding it difficult to short the S&P 500 ETF, which is naturally pushing stocks higher.
At mid-day, both the S&P 500 and the NASDAQ are up over 1%, while the Dow is back above 8,000.