Don’t you just wish you could be a fly on the wall every once in a while, listening to what must be going on at some of the HFT and other trading firms?
Maybe it goes a little like this:
“What can we buy? Let’s see, the news/rumor out of Europe and the IMF is false, but that the heck, let’s throw some money in there and see how we do. If we push it, perhaps we can get the Euro to move higher and the S&P 500 to hit 1,200 by end of the day.”
“Don’t forget about those really great Black Friday sales numbers that they are pushing on CNBC! – Does anyone even care if they include more than last year’s tally as many of the stores may be including an extra day?”
“Buy everything!” Just buy and create a short squeeze. Remember, most funds have been selling and they will rush back in to as they have to chase performance for the end of the year. It will be fun!”
If you think about it, it is rather comical the way that there has been a rush in and a rush out on each rumor. It is the market enviornement I suppose, adapt or die they day…