Something is up. The trading cliche is that low volatility leads to high volatility. Well the market has been comatose since the beginning of April leaving us crystal ball gazers to shake it repeatedly just to make sure its working.
Since the equity markets seem to be, ahem, acting oddly, we look deeper to the Credit Default Swap market. The price of CDS for BOA/Merrill is way up today so bets are being placed on fireworks at tomorrows annual shareholder's meeting.
I for one am hoping he is escorted to the door and don't really care if it hits him in the ass. There are so many hands on the levers of power these days I'm just hoping, not betting.
Update: The powerful pension fund, CALPERS just stated they will be voting for his ouster. Wasn't one Kenny Boy enough?
John Barnyak
President
www.stonehouseasset.com
