This morning I have been reading the news online and came across this article which I feel is a good recap for the week. Towards the end of the article it reads ... "With a majority of global equity trading now generated by computer programs run by big banks and investment funds, analysts caution against reading too much into daily stock moves as a reflection of market sentiment."
Following reading the above my question: Does it really matter what drives stock prices down? Whether it is investor sentiment or the electronic trading platforms and systems ... the result is the same ... the price line has moved downward, in this case, for the market. So, does it really matter if it was the small retail investor or the big banks and investment funds putting selling presure in the market the results are still the same ... The price line moved downward and that is negative market sentiment.
Glad I am 25% in cash ... I will be doing some buying when stocks get beaten down either by the electonic platforms or by investor setiment ... the results are the same. And, May just got underway.
Enjoy the read.
http://www.nytimes.com/2012/05/05/business/global/daily-stock-market-activity.html?_r=1&partner=rss&emc=rssPerhaps, I need another cup of coffee.
Good Investing,
Skeeter
Comments
At the same time, the Feb and March report was revised up (for Private sector by 65000). Government employment due to austerity measures in Local, State and Federal levels are subtracting from employment. Still, we have more people employed than before and more employed people means more people are capable of spending which in turn means more people will be employed in the coming months.
http://www.chicagotribune.com/news/nationworld/sns-mct-april-jobs-report-suggests-slowing-economy-20120504,0,1164207.story
"With upward revisions of 65,000 (private-sector) jobs to the past two months' employment reports, in the first quarter of 2012 private employment expanded by 697,000 jobs, the largest quarterly increase since the first quarter of 2006," Alan Krueger, the head of the White House Council of Economic Advisers, said in a statement. "So far this year, 827,000 private-sector jobs have been added, on net."
http://oldprof.typepad.com/a_dash_of_insight/2012/05/april-employment-report-preview.html
http://bonddad.blogspot.com/2012/05/once-again-zero-hedge-is-completely.html