Impressively Reflexive, Predictable

As I sit here in the early hours of Wednesday the “markets” have reacted overnight to the step back from the brink of the all out destruction of Iran’s infrastructure deadline imposed by the President.

Across the globe (e.g., Japan +5%, China +3%, Germany +3% and the U.S. closing in on 3%) the rebounds are not only impressive, but they are also to where one would expect if it were all just purely reflexively and mechanical. To demonstrate my point here’s an updated chart of the S&P 500™ e-mini as I type this ~7:40am EST. To wit:

As always, we shall see over the coming days how this all plays out. All I will state is that these are the types of predictable, impressive, reflexive type happenings when there’s extreme stress in the underlying that suddenly captures the hearts and minds of those wanting to believe “BTFD is back Baby!” and commence buying horns-over-hooves only to get slaughtered.

Again, we shall see, for no one knows how this will all shake out. Repeat – no one. All one can do (well, from my perspective) is watch the funny little lines on the screens and see how they line up for clues.

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