Hedge Funds Strut Their Stuff

Includes: SPY
by: David Fry

I'll keep this commentary short until I write for members tomorrow. Basically, here is what's happening: hedge fund SAC has been dominating 10% of daily trading, so it alleged. With markets oversold heading into the holiday week and volume collapsing, SAC (and presumably others) trading participation as a percentage of total volume no doubt soared. This meant those stocks with the most short interest and trailing resting stops were easy pickings for a squeeze. The magnitude of the squeeze was impressive, even as there was little supportive bullish news. It's just further evidence of market manipulation.

I'm going to leave it here until the weekend.

Disclaimer: The ETF Digest maintains an active ETF trading portfolio and a wide selection of ETFs away from portfolios in an independent listing. Current "trading" positions in active portfolios, if any, are embedded within charts: Lazy & Hedged Lazy Portfolios maintain the follow positions: VT, MGV, BND, BSV, VGT, VWO, VNO, IAU, DJCI, DJP, VMBS, VIG, ILF, EWA, IEV, EWC, EWJ, EWG, & EWU.

The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations aren't predictive of any future market action rather, they only demonstrate the author's opinion as to a range of possibilities going forward.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.