5 years ago
Wednesday, September 29, 2010
Another Waterfall Sell-off
Just more evidence of two things, no human bids in the market, and algorithmic black boxes running the market. It's possible that they may have kicked in as the SPY failed for a fourth day to take out $115. This volatility is gut-wrenching for day traders on 10:1 margin and for anyone else in the market and it is causing more and more people to flee the market. SKY NET is here and another example of the Fed's law of unintended consequences-at least that is what we'd hope.
3 comments:
When I say the market is like a pendulum, I fear people read the words, but don't hear the message. It overreacts in both directions, always has and the volatility now just makes it worse with a lot of trading done by computers that have no human input. -----So true!
Time for another FED induced stick save in to the close...
.. followed by a goosing of the futures and we'll open higher tomorrow, all ready for more POMO monies being pumped in.
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