GM IPO Debut All But Guaranteed An Up Day

The markets are rocking higher today as the SPDR S&P 500 ETF SPY is trading at $120.26, +2.04 (+1.73%). Today, the biggest IPO ever debuted. General Motors Co GM opened higher today and has continued to hold gains. There should be no one out there surprised that the markets are substantially higher today. Ben Bernanke and friends allowed the institutions to hold off propping the markets early in the week to clear the massive number of calls out into options expiration. Remember, the institutions make billions on selling options and have a vested interest in making them expire worthless. A worthless option means they maximize their profit on the premium paid to them. With a little wink, wink, the Federal Reserve seems to have allowed the institutions to do their dirty business while making sure that on the day an American icon debuted, the markets would soar. This is known as a little give and take amongst the big boys. There was no way the government and the Federal Reserve were going to allow a market tumble on the day GM became public. In addition to the above mentioned reasons, the institutions now need to whip the puts out of the money in the opposite direction. This is another solid reason why the markets could and most likely would be up going into Thursday and Friday. The Dollar is lower today, yet even as it moves off its lows, the markets do not drop. This is a sure fire signal POMO money is being used to prop the markets up on this important day. Next week takes us into the important Black Friday biggest shopping day of the year. Knowing the Federal Reserve, the markets will most likely stay neutral to positive. The stronger the markets, the more people will buy. The more people buy, the more it helps the economy as the average American runs their credit card bills sky high. Right now the Federal Reserve does not care how much debt is created, whether it is U.S. debt or the average American. They just want the economy to recover in the short term and claim victory. They are not looking at the next bubble on the horizon that they are causing. Be aware, learn and live well. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com #1 Rated