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There’s an old Wall Street maxim that the so-called dumb money trades early and the smart...

There’s an old Wall Street maxim that the so-called dumb money trades early and the smart money comes in later. Trading by that phrase would have made you a bit of money this week, as equity markets have continually fought back from heavy morning losses over the European mess to close well off their lows. Traders note the three-straight turnarounds for the market are a bullish sign, as big institutions tend to dominate trading activity later in the day.
Comments (10)
  • HarryWanger
    , contributor
    Comments (180) | Send Message
     
    How stupid are these guys?? It's easy to data mine. Yes, IF you bought on the dips and sold at the highs, great trade! But in reality, the Dow is down over 200 points in those three days.

     

    Really bullish, huh?
    9 May 2012, 08:31 PM Reply Like
  • azblackbird
    , contributor
    Comments (358) | Send Message
     
    Note to the retail investor: Come'on in guys, the water's fine. Never mind the sharks, they won't bite.
    9 May 2012, 08:40 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    I might note that the market (and futures) are still in a downtrend, and that today the markets did not close on complete recovery...we may still see more vol. Good for trading.
    9 May 2012, 08:54 PM Reply Like
  • coddy0
    , contributor
    Comments (1182) | Send Message
     
    reminds me of one stock in 2000 - 2001.
    it was going from from upper 20 to nothing, with all kinds of turn arounds

     

    IMPO
    Today turn around was product of hi expectations for after hours good news, which as appear are not there
    9 May 2012, 08:55 PM Reply Like
  • hmwilson2
    , contributor
    Comments (2) | Send Message
     
    Yeah right, October was not that long ago.
    9 May 2012, 09:39 PM Reply Like
  • dmallik
    , contributor
    Comments (28) | Send Message
     
    There's another old Wall Street maxim that says robo and high frequency trading must close out all short position before end of day. They never carry trades overnight. Duh!
    9 May 2012, 09:55 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9923) | Send Message
     
    Yep, down on heavy volume, back up on very light volume. That's how da boyz try to keep the markets propped up. Market volumes down by over 30% since 08/09. More and more real investors keep leaving the equity markets at every opportunity. Plenty of equities already down 30-50+% already from coal, to natgas, to miners, to GMRC, to plenty more. Market being held up by an ever shrinking base of a tiny section of previous market leaders such as APPL, INTC, MSFT, and some momentum plays. But even tech is finally starting to crack now.
    9 May 2012, 11:26 PM Reply Like
  • mike mohr
    , contributor
    Comments (451) | Send Message
     
    There is no dumb money left. Just computers trading shares.
    The best way to win is not to play.
    9 May 2012, 10:11 PM Reply Like
  • DaleW
    , contributor
    Comments (67) | Send Message
     
    Mike,
    This video is for you!
    http://bit.ly/IZnv7p
    9 May 2012, 10:50 PM Reply Like
  • User 168446
    , contributor
    Comments (108) | Send Message
     
    LOL...Great video. In reality HFT has cost me a lot of money. I want to go back to the days when I could get inside the market makers speads and scalp 1/8's and 1/16's. Now I have to swing trade instead. Much harder...Ban the damn machines (:
    9 May 2012, 11:29 PM Reply Like
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