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Strategies & Market Trends : Playing the QQQQ with Terry and friends.

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To: Kevin who wrote (380)5/24/2005 1:52:27 PM
From: Walkingshadow  Read Replies (1) of 4814
 
I think news can affect things short-term, but my feeling is that the longer the time frame, the less important these things become.

There are a group of traders who play on these things (FOMC, Greenspan sneezes, CPI, PPI, jobs, etc). They generate a lot of gyrations and volatility that has little or no medium-term or long-term significance because their buying power is rather limited.

Program trading accounts for 60% of all trading volume typically, and hedge funds took in $123 billion last year alone to add to their several trillion $ in market clout. THESE are big players who determine market direction in all but the short-term time frames.

But I think the factors above DO have short-term significance.

T
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