Dave Fry at ETF Digest, March 25, 2009
Reports of their demise have been greatly exaggerated. They tango and tangle with trading desks to rule when it comes to driving markets and making money. Check out these numbers from Institutional Investor Alpha magazine:
“You’re just jealous, Dave!” Oh yeah, no doubt about it! But, these guys in the top 10 (with the top 25 announced tomorrow) control billions in assets while trading the snot out of markets. They and the WS trading desks are Da Boyz Club. Many day-trade futures and stocks driving prices any which way they want. Most don’t give a rip about fundamentals or tiresome punditry since it’s just about making money and winning baby! And, “Holy performance fees Batman!” many of them have done just that.
So, let’s give them a hand as they giggle all the way to the bank or the Cayman Islands while naïve innocents like the rest of us toil in thoughtful, or even meaningless, BS.
I press-on in this altruistic quest (silly boy!) to provide you dear reader with thoughts on the day’s action. And, action there was with investors buoyed early by an increase in durable goods, retail sales, housing starts and inflation data to keep the March Madness Rally moving along. A poor Treasury auction result led to selling until Da Boyz launched their “stick save” into the close as markets fell beneath clear support. They have the fire power to protect their positions and prevent any breakdown no matter the cost.
Volume was steady and breadth positive meaning we’re still overbought.
That was an incredible last five minute price spike wasn’t it? Who has the power to make such a move I wonder? Surely Da Boyz can do that and even our manipulative Treasury and Fed. But, we’ll never know.
Da Boyz Club is an impressive group. I should just give this effort up and throw myself prostrate at the feet of James Simons and friends pleading to join the game and pledge their club. I’m just not enough of a hard ass probably.
Tomorrow we get more Fed speak with Dennis Lockhart and then Turbo-Tim gets a short. There is a little thing called the GDP and Jobless Claims but that will be set aside as “old news” in this environment. The bulls have grabbed the tape and won’t let go especially with the end of month near.
Let’s see what happens.
Disclaimer: Among other issues the ETF Digest maintains positions in: GLD, DGP, DBP, DBB, DBC and USL.
The charts and comments are only the author’s view of market activity and aren’t recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations aren’t predictive of any future market action rather they only demonstrate the author’s opinion as to a range of possibilities going forward.
