Open bar..

Today’s market seemed like a chicken running around with it’s head chopped off as all asset classes rocked with no relevance to one another as usually would be the case.    It was open bar as Bonds rallied, gold rallied, Euro rallied, USD weakened and equities whipsawed back and forth.   This simultaneous action was triggered by calls about QE2 coming soon from MS next meeting / GS in November.  This is news to DJIM,  the FED has given no indication and/or recent macro data that this is coming, so we’ll stick to the FED until it hints what’s underneath their skirts.

All that matters to us, equity traders, is stocks still have underlying bid as BBY, CSCO  (kept the SMH ~<2% reversal intact) and retail macro data did nothing to spoil the better to buy market in September as we challenged the August high.   All the noise outside is just speculation and a detriment to actionable trades.  It’s hard to believe today’s ‘we all go up’ trade can last.  

Risk is to upside as macro data continues in Bulls favor, a new twist is the MSFT/CSCO  return of capital to shareholders news.  A big problem with 1130 being resolved is conviction buying coming in from institutions/MF’s.  Maybe, this ‘big cap’ friendliness is enough to get things going.