Welcome to the Machine
Doug Kass' line about the market not having a memory from day to day definitely applies today. It went from a gloomy, trend-down day to an upbeat, trend-up day on no significant news. If anything, the news was negative due to poor earnings reports from YUM! (YUM) and Baidu (BIDU).
This sort of inconsistent action is another good example of how computerized trading has come to dominate. Humans may have mood swings, but the pattern of shifting every other day smacks of computer algorithms trying to catch market players out of position. Yesterday and last Thursday, the computers kept the pressure on, which scared out some bulls who had grown overconfident in their dip-buying. Today and last Friday, the computers squeezed the bears who have been anxiously anticipating a market rollover for weeks....171 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.