Algos Have Christmas Parties

The divergences continue to grow as the algos jam the indexes higher, taking advantage of the lightly-attended pre-Christmas sessions. In the meantime, the lousy economic data continue to roll in. Today, the Atlanta Fed 4Q GDP estimate fell to 1.3% – and remember that this is only a forecast of the preliminary number, not the more-or-less true number which we will not get for two or three years, after multiple revisions.

Notably, the lifting of the US oil export ban has caused the prices of Brent and WTI crude to converge. Brent fell and WTI rose. This doesn’t mean that we are not still awash in crude.

The private providers of Chinese economic surveys and reports, such as Caixin, have abruptly stopped publishing. Their recent reports have differed drastically from the official line. Given that the authorities have been “disappearing” anyone suspected of spreading negativity, one might surmise that things are not getting better but they chose not to pursue involuntary vacations.

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