Astute Observations by Jesse

By
Craig
– April 13, 2009Posted in: Intraday Commentary

Several times I mentioned here that I follow Jesse’e Cafe American blog.  Jesse is an experienced trader who has proven to be more right than wrong on both sides of the trade.  Here made these astute observations in his blog entries today.

  1. This rally is looking increasingly artificial and led by buying in the SP futures, which was the trademark intervention established when Robert Rubin was Treasury Secretary.  This does not mean it cannot go higher, as the markets are awash in liquidity with no productive outlets that can compete with the easy returns of the hot money speculation machine.  It does imply that on news this rally could turn lower with some serious momentum.  ….. For now this rebound in US equities a slow short squeeze probably led by the momentum traders and by the bankers who met with Obama at the White House. We’ll know more when Obama produces the details of his discussions with them in keeping with the transparency he has promised. Or are the bankers to Obama what the oil companies were to Cheney? [Link]
  2. The major source of profit for Goldman Sachs was from speculative trading. There will be no recovery in the real economy until the financial system is reformed and banks are restrained into productive functions within our society. [Link]

About Craig

Stubborn Bear from Boston