Tuesday, May 5, 2009

Bizarro Market: Any Day Edition v2

If anyone actually cares about the market at this point, and is naive enough to trade, here are some observations.

HSKAX abd HFRXEMN are both about to take the bottom out of their respective charts. One can only imagine what is going on behind closed doors in East Setauket as small, more agile quants with price-only based short term momentum strategies are devouring their larger, more sophisticated brethren.

Furthermore, as Matt Rothman keeps on pointing out, the garbage sectors are flying, while recession proof consumer stocks are dropping.

Lastly, continuing from yesterday, MS has stopped printing massive (or any) SPY blocks, and the result is yet another day of dropping SPY volume: now 13% below 20 day average.

Our advice: turn the TV off, log out from E*trade, stop taking calls from Deutsche Bank CDS salespeople, and go for a long walk for the next few days. Sphere: Related Content
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