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ICI Reports Another Massive Equity Outflow In Prior Week, Stocks Now Ignore Fund Flows
As we predicted previously, in the past week domestic equity mutual funds experienced another whopper of a redemption. ICI reports that for the week ended June 9, domestic equity mutual funds saw $3.7 billion in outflows, 3 times the prior week's outflow, the sixth sequential outflow in a row, and $27 billion in outflows year to date. Yet stocks, which persist in ignoring all fundamental flow data, are not only above their 200 DMA, but also positive for the year, as the pathetic algo games on no volume continue to diverge the market from any semblance of reality. Good luck Fed, SEC, and Primary Dealers in restoring credibility to this joke of a market.
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Five days after all life on earth is gone the stock markets will be hitting new highs thanks to the beauty of algo trading logic.
+1000 life after people
+5
It's hard to grasp the reallity that stock markets are no longer an indicator of anything short of a Potemkin Village engineered by Ben Shalom. Knowing this, I still can't stop myself from looking at them, they are so deeply ingrained in our thinking.
The stock markets are dead relics, Forget them.
An elevated Stock Market is key to the "Management of Perspective Economics"* game thats being played out.
*MOPE to quote Jim Sinclair
Why doesn't someone just clip the Internet connections at FRBNY and a couple of other key places just to see what happens?
'Good luck FED, SEC, Primary Dealers in restoring any credibility to this joke of a market', to me the most important overlooked economic factor of all. No one will ever return to these ridiculous markets with any confidence. Im real sick of looking at a market manipulated to keep the morons placated till the new season of Dancin wit da Starz starts up. Real sick.
The beauty of this is that once all the 'investors' are out of the market, the risk of another flash crash due to high-volume selling will be gone, and the algos will be able to push the market up without resistance.
That would be good for long term investors.
Go in 100% on dividend paying stocks that will at least keep up with the price of inflation.
Of course, the daytrading profit days are all but gone.
Why would that be so bad?
True, Al...soon as all the pesky meat puppets are out of the way of the machines, Skynet can fully take over and implement its reign of terror.
It'll be like WaPo yesterday. Up like 50,000% in a sec. With HFT algo's/SPARC/80286 machines, you don't need cash to move stocks higher.
why are you tracking long term fund flows? 70% volume is milli-second today and it would be no surprise 90% market has a short term horizon. This 10% market will not matter.
We need a way to track extreme short term liquidity flows.
I tried, but I can't even respond to this. Mutual funds and/or 401(k) plan administrators don't normally allow for short term trading of mutual funds. Could you elaborate on "short term" versus "long term" flows? Maybe Proshares or Rydex, but not the big boys like American, Fido and Vanguard.
We can track delivery % of equities - we may get a clue in terms of daily volume for intra-day trading vs equity changing hands. This may be correlated over time and we can get a trend. So we know whether short term trading or real investors are involved in a move.
NOBODY LEFT TO SELL TO will be a thing of pure BEAUTY.
There's always teh fed. Don't get your hopes up.
BULLS-EYE! THERE'S ALWAYS THE FED TO BUY YOUR SHIT STOCK WITH P/E OF 31!
Can computers watch CNBS?
the crash cannot intensify until we are farther along in the world cup...
oh, and the date for operation blackjack is next tuesday. nukes should get the algos moving...
http://www.youtube.com/watch?v=WCDlndLvCMs&feature=fvst
ok, why the hell not.... here are potential false flag attack dates through july.
6/21-22: the telegraph put out the weird cartoon series last year depicting nuclear attacks on this date. occult calanders show june 21-22 as an illuminati human sacrifice night.
7/7: because before, probably not, but also it is the finale of the world cup.
7/29: this is the bar code symbol for goods/products made in israel.
7/31-8/1: Lughnasa, Great Sabbat Festival. August -- One of the Illuminati's Human Sacrifice Nights
note: April 19 - May 1 -- Blood Sacrifice To The Beast. Fire sacrifice is
required on April 19. bp fire april 20th. (spooky music)
Is there a bubble in conspiracy theories too? Cause this strikes me as a search for a greater sucker.
BTW, today is the anniversary of Smoot-Hawley. Stay inside.
nothing happening here, move on, move on
the banksters behind destroying the markets with this blatant computerized rigging are the worst scum on the planet
pure f***ing evil
ok, I'm a newbie so forgive me, but why do the "algos' always buy? If I were trading using algos, I'd program them to sell.
Plenty of idiot pension fund managers for all those municipal and state employees pensions still left to skin. Algos will make so much money up to the end that it'll make up for the massive losses they might realize. And then Uncle Sugar will probably tap you and me to make up for their losses anyway, so it's win-win for the HFTs.
'Good luck Fed, SEC, and Primary Dealers in restoring credibility to this joke of a market.'
You might be making an incorrect assumption.
I really think that's where we are heading...
no one left to sell to... regular mom and pop 401k's will become completely distrustful.. traders are getting skimmed everyday..
eventually all the wealth will be transferred to the only ones making money...
you know.. the people who somehow magically make a profit every single day and never lose.
with enough time.. they'll be the only ones left.
And when that happens we will be building guillotines and go looking for them. At which point their ill-gotten gains won't seem so comforting to them.
This makes fundamental investing near impossible. Consider the equity outflows posted above and assume that most of these mutual fund flows are long term "fundamental" investors. They are in the stock and the marginal trader, who could literally control 100 shares ultimately sets the price on a daily/weekly/monthly basis. Purists will argue that over the long term fundamentals will always dictate security prices, but with the amount of volume attributed to these machines, its really makes you wonder. A tax of some sort and a consolidated pricing source (I.E. and exchange without dark pools and HFTs creating chaos) are necessary if there is ever to be faith restored in the market as an actual representation of market determined value.
You are joking, right?
"Good luck Fed, SEC, and Primary Dealers in restoring credibility to this joke of a market."
No we know why Cramer's pissed. The games are keeping the suckers out, so he can't off load his high priced manipulated portfolio to rubes and N00bs.
Is this that mysterious "money on the sidelines" that all the pundits say is just waiting?
Those EURUSD bullish warnings have strengthened further today.
Vice versa for the USD index of course.
It seems the current EURUSD downleg has ended.
http://stockmarket618.wordpress.com
This market is simply the gov't plunge protection team vs HFT's. No one in their right mind would invest in a manipulated market were all the issues like Naked shorting,HFTs,diminishing dividends,Outrageous upper management pay,broken Board of directors duties,executive options packages that kill any chance of meaningful profits,Options backdating,DTCC collusion and unaccountability or transparency ect. ad nauseum would invest in for more than a few hours. So Washington and Wall St. you have been pumping trading of stocks for years so you can generate more commish for Da boys. Now you have a market thats exactly what you wished for a microsecond casino game of spin the bottle. Enjoy........Hope your Corporate pukes can adapt and be able to invest their money fast....................LOL
+1000
The stock market can only make a very small chunk of us rich, so the more average joe's and pension's chased out of it, the better.
dojis
This is where we reside:
The greater fool theory (sometimes the bigger fool theory, also called survivor investing) is the belief held by one who makes a questionable investment, with the assumption that they will be able to sell it later to "a bigger fool"; in other words, buying something not because you believe that it is worth the price, but rather because you believe that you will be able to sell it to someone else for an even better price.[1]
It is similar in concept to the Keynesian beauty contest principle of stock investing.
Some consider it a valid method of making money in the stock market, particularly momentum investors; however, fundamental investors believe that market participants eventually realize that the price level is too outrageous (too high or too low) and the speculative bubble pops. The greater fool theory relies on market optimism and market momentum concerning a particular stock, an industry, or the market as a whole.
Makes you wonder whether Warren Buffett's GLD holdings are evidence of the former, or the latter...
This bodes well for further upside in this joke casino........