Why do we have this sense JP MO and Morgan Stanley are going to own a large book of Facebook stock at $38? Maybe FB stock will be the Fed’s asset of choice during the next round of QE since it appears much of it is coming back to the Street.
P.S. The Trannies and Russell broke support at their 200-day today.
We expect more selling given the payoff matrix (see below) we constructed yesterday. Next stop 1278 on the S&P500, the 200-day moving average, and let’s hope we bounce there. Could be, and often are, wrong.
(click here if charts are not observable)