Another day another bizarre tape. Wall St is certainly happy to have trading robots creating liquidity on days like today. Today's news would have likely sent the market down 200 points if the market was trading like it was a few years ago.
Technically I thought this was interesting. The market has done nothing since the big up move on Monday:
We closed the week out almost to the point from where we started the week following the bounce at the opening.
The rest of the week has been dominated by this bizarre/choppy algo trading. My guess is the majority of the day traders are getting slaughtered by the robots on this type of tape. They have no chance against the speed and precision of the pros and their powerful HFT's.
The algos are loving this hot market right now because it's sucked in many new retailers for them to fleece.
Over time I am hoping the tape will return to more normal trading once these E-traders get chewed up and spit out. For now, the robots will rule because there are new pockets for them to empty.
The Next Bull Market is Here!
It's time to go long food stamps!:
For a second there I thought I was looking at an Apple chart. I need to figure out how to buy call options on 20% participation by December. I am sure those would pay off handsomely by the end of the year.
Seriously, it's a sad day in America when 1 in 6 people cannot afford to eat. What happen to these people when the deficit forces us to cut entitlement programs like these? Let me answer that for ya: You might want to load up on some guns and ammo.
The Bottom Line
The market is being held up by the power of the trading robots along with fumes of the emboldened bulls who have ridden this powerful rally the last few months.
I am sensing a loss in confidence in the last few days. Retail numbers and the jobs report were OK but less than expected. Europe looks like it's ready to explode. The Massachusetts foreclosure ruling is a huge negative for the financials. Commodities like gold and silver have had a bad week as the dollar rallied.
Can this market still move higher without the financials and the commodities participating? It going to be tough. Earnings and Europe will take center stage over the next few weeks.
In the meantime it's time for us to pay our respect to the power of the robots! Who needs QE2 when you have the robot PUT!!!