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The funds have so much money rolling in, they go push the market any way they want to. They are trying to wipe out traders who were cutting in on their action. The big houses don't want to derail this gravy train, so they swing the markets around violently, making it less profitable to trade, while keeping it profitable enough for the buy and hold crowd to smile to themselves and congratulate each other for doing the right thing, as they've been told. "You can't time the market, see". Don't kid yourself, there are some extraordinary market timers who hang out here (I'm not one of them but I am learning). The average market timer will be wiped out, go back to their day job, and contribute to their 401K mutual fund, giving the house more ammo to control the swings, as well as providing the market psychology that it's not worth it trying to time the market. I occasionally read a comment on the threads about how it's a traders market. IMO for the very talented trader that is probably true but, for the vast majority this year has been too much for them. To conclude, I think the bull is intact and will resume with occasional reminders to not step back into the ring, or else. |
