Quick Remark About This Rally
Program trading - buying and selling a broad basket of stocks at a proverbial push of a button bears no resemblance to investing. It's another of the ridiculously ridiculous or double ridiculous schemes on Wall Street driven by an ever increasing liquidity bubble.
If anyone has any question of the types of buyers in this market, one only has to look at GM. GM shareholders are headed for the scrap heap and the market has known that for quite some time. Yet, on major up days during this rally GM's stock goes up 20 or 30%. Why? Program trading.
GM is going to declare bankruptcy within day(s) yet from this morning's low to it's price peak GM's stock rose 20%. Why? Program trading. What reflection does this have on the underlying economy? None. What reflection does this rally have on the underlying economy? ..................
If anyone has any question of the types of buyers in this market, one only has to look at GM. GM shareholders are headed for the scrap heap and the market has known that for quite some time. Yet, on major up days during this rally GM's stock goes up 20 or 30%. Why? Program trading.
GM is going to declare bankruptcy within day(s) yet from this morning's low to it's price peak GM's stock rose 20%. Why? Program trading. What reflection does this have on the underlying economy? None. What reflection does this rally have on the underlying economy? ..................
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