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Wednesday, May 12, 2010

High Frequency Traders Mission accomplished, Mary Schapiro-are you watching what is going on???


High Frequency Trading (HFT) is back accompanied by every other momentum trader in an effort to wipe out the entire 488 point drop in the Dow last Thursday and Friday. The Dow closed 5/5/10 at 10,868 and hit just hit 10,878.

Last week’s concerns are history and once again, all is well in the Wall Street hood and it is business as usual. Drop 488 points over 2 trading days and get it back with change in 2 ½ trading days. Only good news from this point forward so it must be time to buy!!! Let's check out the bullish news...

Morgan Stanley is being probed by the government regarding potential misrepresentations on their mortgage derivative products (Collateralized-Debt Obligations/CDO’s). JPMorgan Chase being investigated by government agencies regarding alleged manipulation of silver trading. Wells Fargo said Friday its mortgage lending units are being investigated for their lending practices.

Greece's two biggest union groups called a fourth general strike this year.

U.S. Trade gap hits 15 month high....BUT exports surge....yippee!!

Prime Minister Gordon Brown resigns.

European Union announces a $1 TRILLION BAILOUT...take that Bernanke

Nearly 40 million Americans received food stamps...excellent for the equity market!

Commercial Mortgage Backed Securities delinquencies for April: 7.02%...so time to by REITS

This week's rally is truly bullish as the volumes surge...well, not exactly, well, not even close...

SPY Volumes:
314.3 million on 5/11/2010 and down $.33 on the day
395.9 million on 5/10/2010 and up $4.90 on the day
636.8 million on 5/7/2010 and down $1.68 on the day
637.9 million on 5/6/2010 and down $3.88 on the day

HFT and market manipulation on low volume is back with a vengeance. No better way to get the SEC and Mary Schapiro off your back then to launch the market especially with all the bullish news. Enjoy the party until the keg runs dry yet again! UPDATE: DOW CLOSES AT 10,896 so they got it all back and a cushion simply to make a statement.

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