Archive for April, 2012
The system closed the month of March with a modest gain (+2.5%). With the exception of a few days, most of the market’s movement continues to be in the gaps, with relatively narrow intraday ranges. Again and again the market gaps up/down and then just lays there. Everyone seems to be guarding their chips and waiting for the other guy to make the first move.
So why all the caution? My personal view is that the ever-looming Euro debt crisis has instilled quite a bit of fear into the markets and the retail investor (after loosing all of his home equity and most of his 401K) has run screaming, fleeing equities for the foreseeable future. Thus, what we seem to have now is a listless market comprised largely of HFT bots trading money back and forth. A zero sum game and a difficult environment for the retail day trader, to be sure.
Full length video of all four episodes can be found at PBS FRONTLINE
We sure live in interesting times..