MARKET COMMENT
Dave Fry’s ETF Digest, August 5, 2009
Today’s disappointing employment report from ADP was the dose of cold water an overbought market needed to sell-off. But then the cavalry came to the rescue at just the right moment with GS’s call upgrading economic growth estimates. The effect was a ragged rally reducing more selling. There’s a concerted effort in officialdom and with their Wall Street brethren to lift markets and they’ll use whatever new rules and tools are needed to get things going. Making you feel good makes them money and reelects incumbents. With regard to the former is the eyebrow raising Bloomberg story how GS is making $100M per day trading. Yep, they’re trading free money from you and me with their High Frequency Trading systems (HAL 9000s).
If you don’t think companies aren’t front-running their recommendations you’re living in dreamland. But we’re just pawns in the game. You either play with them or leave the casino.
Read all of Dave’s Market Comment here >>
