Today’s rally is brought to you by a handful of giga-cap stocks being manipulated by the HFT algos, while market breadth remains deeply negative. The Fed’s performance yesterday was deeply disappointing to the hedge funds who were caught offside, especially by Ms. Yellen’s lack of assurance.
Hedgies are long these stocks (the “hedge fund hotels”) and record short Treasuries, so they are trying to make the market go their way.
Will they get away with it? Well as far as the well-bribed SEC is concerned, of course they will. But there are still market forces out there. We’ll see.