Zeev's Turnips Patch-No Politics (ZEEV)

[ajtj99]

Personally, I don't think any of that stuff has anything to do with what's happening in the markets now. 40% of trading is programmed trading. Do you think the computers care what MSFT's earnings are going to be? No. They only care about hitting fibonacci's, trendlines, support, resistance, Moving Averages, and cycles.

Computers can be helped out by timely futures buys that nudge the indices over some of those lines. That's where the criminals on Wall Street come into play at times. However, this market appears to be liquidity driven right now, and hot money is chasing after a hot market.

If you think people are putting money in the market because they think MSFT and GE's earnings are going to get better, I think you may be in the minority. Much of the money is coming in chasing after a high return regardless of fundamentals. I don't think the average 401k participant knows P/E from P/U.

It's almost like a pyramid scheme where the last ones in get screwed. In this case, the last ones in will buy shares at a local high from smart MM's who are shorting a coming correction.