The Game Is On

Market is in the midst of testing the lows as continued redemption and position adjusting takes place. This test of the government's intervention policies is going to be an interesting trade. Despite the claims it will take a while to start to see the affects of the government's hand, there are clearly some equity bids the Treasury can implement to stem some of the selling. The markets should start to see a pissing match between redemptions and bear drivers on one side, and interventionists and bottom fighters on the other. The strategy for any buy programs will be to have enough strength to force the arb to run for cover repeatedly.