Hang On

The markets behave as if they were at an end of a rope with the interventionist crying to just hang on, help is coming. But worries continue over just what relief will appear in the Geithner presentation next week, which the markets will listen to after Friday's jobs number. The reshuffling of the new risk parameters continues to drag on the pricing of stocks, indexes, and options. The latter of which has taken the biggest beating in all the unwinding of the make believe world of the last eight years. For example, outstanding calls and puts have fallen 46% to 153 million, the lowest total in three years. Seems the math models used to calculate option values have blown up and now made pricing much more expensive. Most have never been any good anyway as LTCM proved. Now with declining hedge fund activity, less option pricing is being implemented.