Wednesday, July 28, 2010

It's The Retail Investor, Stupid!

I get tired of the endless analysis, day after day, by the financial media talking heads, about why the stock market just seems adrift, up then down for no discernible reason, always on extremely light share volume.  Blah, blah, blah.  So accustomed are they to tying any market surge to "earnings", or market dip to "lower margins" (or either one to any one of several dozen other scapegoats) that they can't see the forest for the trees.  The patently obvious reason for the current market malaise is that THE RETAIL INVESTOR ISN'T IN IT ANYMORE.  In other words, volume matters - and is trying to tell you something.  Screwed (again) by the Wall Street greed that led to the crash of 2008/09, it turns out that was only the beginning.  We won't be back until flash-trading, high volume trading, dark pools, and other Wall Street creations that disadvantage the retail investor are cleaned up and there's a level playing field for all.  It happened again the other day (an up day for the markets) when Mario Bartiromo on CNBC remarked at the close that only 1 billion shares had traded all day on the NYSE - very light volume.  Hello ... Maria, Larry, Cramer, Haines, Burnett, Geitner and co. ... hello, we won't be back until Wall Street is cleaned up!