Last Day Of Summer

Labor Day is upon us, which usually marks the end of the summer doldrums as far as financial markets are concerned. Also Europe comes back from August vacations and of course that means more news flow from the Eurozone.

Mr Bernanke spoke this morning at the central bank self-congratulation conference and, to the surprise of every naive four-year-old, said little other than to congratulate himself on saving the world. However, that was deemed bearish by the algos, which were trading the news within 20 milliseconds of its release to their AI modules, according to zero hedge. Said algos then noticed that humans were shorting alongside them, and promptly turned around to squeeze the human shorts as usual. Sigh. The good news, from a personal point of view, is that they also decided to squeeze the Treasury shorts, a.k.a. Bill Gross and anyone who listened to Credit Suisse who had publicly recommended shorting earlier in the week.

The next three months are probably not a good time to get too far from your trading screen(s).

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