yes this is extremely true. in fact the volume is very misleading and liquidity has slowed down to an absolute crawl. for example, the small/mid cap space which had 500++ stocks trading a range of 130cents and above in the first 2 weeks of last december, a traditionally slow month. the last 4 months this space has only yielded 50-100 names. this is absolutely atrocious, and is indicative of the investor's community faith in barack obama
this is absolutely atrocious, and is indicative of the investor's community faith in barack obama -------------------- That's an interesting point.
I had no idea Lehman was even trading still! When did Bear stop trading in relation to the bankruptcy?
Of course the braindead fed and the US government think everything is just dandy. They did some serious damage to the stock market in march in april. The real economy could never respond as fast credit spreads have collapsed. There is no liquidity in the stock market at all.
More simply, there are always shorts who want to cash in, free up capital, move along to the next opportunity -- and don't mind leaving a few pennies on the table. Riding LEH down from $60 to 14 cents isn't much different from riding it down to 0.
The powers that be have a lot vesting in pushing the SP500 up. Everybody watches it as it is used a general proxy for global (nost just U.S.) business activity. Money losens up everywhere in a bull market. The HFT theory might have some merit, however, the March bull run did get started with the dumb money capitulating. This indicates that pure supply and demand forces (intermediate term over sold conditions) may have been at play. The Odd-lot purchase percentage chart says a lot. Since March, the dump money has been all over this thing trying to catch the turns (perhaps 401k holders trying to regain their losses).