links for 2009-10-16

The non-nefarious reason stocks pin is that options owners on a strike price bracket the stock with ever-tightening orders on both sides so as to offset the options going to intrinsic value (or zero). The greater the open interest relative to typical volume, the more likely a stock will pin. Sort of.

The first stage of the U.S. economic recovery is coming along better-than-expected but the rebound may be prolonged as consumers save more and businesses clean up their balance sheets, U.S. Treasury Secretary Timothy Geithner said on Thursday.

U.S. Sen. Bill Nelson made no bones about it during his recently concluded meetings with Chinese officials in Shanghai. Toxic drywall and lead-tainted toys have badly shaken American consumers confidence in imports from China, the Florida Democrat said.