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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 687.72+0.7%Jan 5 4:00 PM EST

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To: John who wrote (65885)1/4/2001 9:14:41 PM
From: KymarFye   of 99985
 
I think that, like some in the media, you're exaggerating the impact of "online daytraders" on the market. Compared to the amount of capital deployed by institutional participants, daytrading doesn't count for much at all, even on favorite daytrader's stocks on the Nasdaq, much less on the thousands of other publically traded companies that most daytraders wouldn't even think of touching. With the exception of a few anomalous instances (pumps and dumps on small caps), individual daytraders slinging around hundred share lots with mouseclicks are probably at most a symptom of the novel technologies and changing practices which have had much greater impact both on the markets and on the economy itself. Daytraders don't "kill sectors," though mutual funds might, and, anyway, most of these "deaths" are just random noise and non-events to l-t investors big or small.
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