What choice do they have to gain some liquidity to short stocks. Also have you noticed how the market does not always just take off when oil drops------------because the oil sector stocks are getting hit then with profit taking. There have been several days in the last two months when oil dropped and we had some selling off in equities simultaneously. Just like there has been days when oil is running up and so is the market---------hedges buying oil and running it up with no extra liquidity to play the short side on equities, while the institutions are buying up equities totally unencumbered from no size on the ask. The last two months have been a very non-standard play of liquidity in the market and this type of rally has never really happened before, so technicals are only telling half-truths at this time in my opinion. We have a great many of decoupled market inter-relationships right now as compared to the past and this is also adding to the mix. The markets volatility has been driven right into the ground all through this period and this is done through targeted doses of liquidity week after week-----------no there is never manipulation in the markets-----------hahahahaha! So who else gets hurt when the trading ranges are tight and there is a lack of volatility in the equities market---------hmmm, maybe those hedges who have trade systems or the little guys trying to make money for themselves {while not using mutual funds like in the past}. I personally do not care what the institutions are trying to pull off here with their liquidity war against the hedge funds, but I do know when volatility is absent, the scalper and linear style trading system traders have some of their weakest performance. This is a very unique market environment we have and next week will be an "all or nothing" action packed week------------so get your rest this weekend and be ready for Monday!
When you have a strong bull market in both markets, which is not the norm, what you end up with is, underpriced oil and overpriced stock markets. Does this make sense to you guys ?
I do feel the current situation is such, underpriced oil and overpriced stocks---------so I think oil will go up and the market will go down by the end of this month.
Macro You sure you are in the right job? Sounds like you are a political scientist waiting to get out. None of what you said though seems to be focused on how to make money. Seems you like the intrigue more than the plans?
No---------but I do tend to agree with the more hawkish members on these threads when dealing with geopolitical issues. I served time in the U.S. Air Force as an AFSC 81150 and I am a conservative voter so I have a very harsh stance when terrorism is discussed. Terrorism is the only real threat I see to what I do for a living and I do not want terrorists to have that type of control----they don't deserve to have any mercy in my opinion. LMeyers---------is that correct you have been here at elitetrader since feb 01 and you have only 40 posts? That must be a mistake on the posts counter or not?
LMeyers----------my comments on commissions in the HFT thread was not an attack on you, but I was attempting to get the focus on only the cost of a trade redirected to what is important. The main importance is how the system performs and what is the monthly return in my opinion. EDIT__________what happen to your posts? I suppose you deleted them------ok.