Wall Street Manna

An irreverent look at Wall Street

Friday, June 19, 2009

Market jitters look like they are leaving

Merrill executives now want to buy BAC back? After their financial problems have already gone away? What chance is there of that happening? Maybe Merrill sees better times again!

Mary Schapiro, looks like she has started to read blogs. She now wants some transparency on dark pools. No wonder Goldman Sachs gave this statement a couple days back:

More specifically, we support the reporting of “single-counted” and “matched only” volume as a standard, similar to what exchanges have followed for some time. We believe these suggestions will go a long way to increase transparency, confidence in our industry, and the understanding of our complex market structure.

China though, doesn't want to be in a dark pool. They are advertising to the world that they want to invest in hedge funds again. They don't want to miss the "bottom." China Investment Corp (CIC) has about $200 billion. Throw $500 million in a Blackstone fund, and maybe the markets will rally on the stories, and then China may actually be able to start selling something to the world again!

But look at stock prices. We've absorbed hedge fund selling, option pressure, and 22 bank downgrades by Moody's,and the market rollover story bandied about by the bears. And if you look at where stock prices are now, it means that we need an even bigger rally, to get a lot of individual stocks back to where they were just last month.

The market looks like it is finally set up to do that again.

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