Thursday, April 2, 2009

Positive Sign Out Of IPO Market Ltd. shares climbed 25% today after the Chinese gaming spinoff from started trading in the U.S.

The stock climbed after being priced at the high end of its estimate. This kind of action along with the Simon Property debt raise a couple of weeks back is very positive.As I said at the time of the Simon raise:

Folks, this is known as a BUY SIGNAL.The rocket fuel the Fed has been pumping since September has started to launch some rockets.
Why are these actions so positive? Because the IPO market and the debt market have been dead. These are two deals that have nothing to do with government shenanigans, they are true reversals from dead markets. This type of strong activity around both these deals tells you there is money on the sidelines, and given want the Fed has been printing, it's a lot of money, but as I have said since before the markets started to move, the move is going to be very fast.

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