Stocks led by four wounded horsemen

Stocks led by four wounded horsemen

money.cnn.com

A bizarre trend has emerged during these hazy, lazy days of late summer. Overall market volume is unsurprisingly wafer-thin, but a big chunk of trading has been in just four financial companies that have received a healthy dose of support from Washington in order to make it through the credit crisis.
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This is kind of scary. It suggests that the late-summer portion of the almost six-month long market rally is being fueled more by speculation and momentum, not real optimism about a potential.

(visit the link for the full news article)

Is this the final proof of government intervention in the stock market that we have all been looking for. For over a year now there has been topics about the PPT or plunge protection team, and now here is companies that have direct government ties pushing the stock market up.

It is a bad deal that they gambled with our dollars before and created this crisis now they are gambling with our tax dollars. This manipulation is giving a false sense of security for the American people.

When the true severity of this economic situation comes to light, I think that people will be dramatically affected in their day to day lives.

money.cnn.com
(visit the link for the full news article)

well how can you expect to manufacture the biggest economic crisis in us history, with millions without work, more going broke everyday, and think you can prop it up with stilts of sugar cubes?

i just cant believe that bernanke is back in office.

i mean how does this make sense.

on NPR the other day, they said that obama put bernanke back in because he didn't want to break up the financial team that has been working to fix the economy......

but wasnt bernanke's own policies what created this mess in the first place?

what in god's name is going on here????

is everyone so blind?

edit: but yes, i think you are right.

[edit on 8/26/2009 by mahtoosacks]

reply to post by mahtoosacks


You are very right, the chairmans policies are what DIRECTLY aided in causing the financial crisis. Did you really expect them to put anyone else up for the position? Same players just under a different party.

Karl Denninger pointed this out on the 24th.

The Lie Of "High Frequency Trading" Liquidity

There is an oft-repeated lie that "High Frequency Trading" adds lots of liquidity to the market, and thus is a "good thing."

But repeating a lie a thousand times does not make it true. It just makes you a damn liar instead of an ordinary liar.

Let's postulate two HFT computers passing 1,000 share orders for the mythical Frobozz (FBOZ) back and forth between each other. There's a scadload of volume generated by these transactions, and an outside observer, who is unaware that the 1 million shares are in fact 1,000 transactions of the same 1,000 shares being passed back and forth between the same two guys, might assume that there's a lot of liquidity that has been added.

But this is in fact misleading, as the following example will demonstrate.

Click the link for the entire posting. It's worth a read.


Edit: Also like to add this quote from the news article...

"Anecdotally, I don't know anyone that really loves the market but it continues to go up," said John Norris, managing director of wealth management with Oakworth Capital Bank in Birmingham, Ala. "Whenever you have a concentration in a small group of stocks, it's worrisome. Perhaps it could be a sign that this rally is set to peter out."

[edit on 8/26/2009 by Tentickles]

reply to post by Tentickles


Good article. I do especially like this quote:

But repeating a lie a thousand times does not make it true. It just makes you a damn liar instead of an ordinary liar.

People have been just buying what was fed to them by the government and financial institutions. I think though that now people are waking up and seeing that all is not peachy.

reply to post by Tentickles


in the high frequency trading name, the HIGH part sticks out to me. i think thats a relative term. high compared to what exactly.

see when i play with forex, their frequency must be INSANE instead of high, because stocks are weak in comparison.

on that scale, there isnt a way to tell which way its coming from at any given moment. a couple trillion a day traded.

but on the scale of stocks, the term high is misleading. with only a couple hundred million traded (before the crash) it is possible to track where these transactions are coming. so there for, you could just be passing the same notes back and forth.

i hate stocks. mainly that they are fake.

i hate it that the central banks are manipulating forex price movement as hard as they can. everything has been ranging for months now.

trends are your friend, but all my friends left town. maybe for good

it will be hard to trade currencies, when there is only one.

sounds like a terrible highlander cliche


[edit on 8/26/2009 by mahtoosacks]