"Frustration Is Everywhere": Goldman Says Today Was A Huge Pain Trade For Hedge Funds And Institutions

The stated reason for today's market meltup was "debt-ceiling optimism". According to JPM TMT trader Ron Adler: "There's more optimism this morning around the Debt Ceiling as futures reclaim the majority of yesterday's sell-off."



Stock prices have dropped sharply, and Washington is only motivated to reach a deal by the market. Stock prices are falling sharply and by increasing instead, the motivation to make a deal is gone even if a technical default and market turpitude become more likely. In a market in which 0DTEs are dominant and determine the "momentum" of the market on an hourly base, it is not surprising that nothing surprises anymore.

Michael Nocerino, Goldman trader, explained this in his post bellnote: