Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Thursday, February 21, 2008

futures action

There is a story about futures action on minyanville.

If you watch the market close enough, tick by tick everyday, you notice things. They start to add up and you can’t avoid the feeling that the markets are tainted, manipulated. If not, they have gotten really, really stupid. I mention these things from time to time, the most interesting being that every rally is futures led. Buyers are not buying stocks because they like the fundamentals, buyers are just buying futures because they want in the market. Or do they even know what they want?

This was what I was trying to get at yesterday, that alot of the action is in the futures market, and not what I call "Natural buying" and selling of stocks.

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