For a holiday week this week is chalk full of important economic news and dates. We have home price indexes, pmi, ADP employment numbers, ISM index, auto sales, nonfarm payrolls, the end of the month, wnd of the quarter, and for some firms end of the fiscal year. The market jam last Thursday leaves me agnostic on my feelings on the market in the short term. Should be interesting.
Speaking of Thursday, after thinking about it I have devised a theory. The way Thursday developed, I believe that it was some major macro fund / pension fund that had a large cash pile that didn't want to report they had been holding so much cash this past quarter. It wasn't just an equity market jam job. It was commodities, bonds, stocks, every asset class got jammed higher. This makes me think they just wanted to put alot of cash to work so the books they report show low cash numbers. Several blogs have highlighted very unusual futures activity the night before. My guess is somebody found out this fund was going to go to work on Thursday massively changing its allocation and jumped ahead. It is very unusual for all asset classes to go up. This would explain such a move.