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The market's gains last week had the scent of desperation buying by investors playing catch-up,...

The market's gains last week had the scent of desperation buying by investors playing catch-up, some veteran traders say. Smaller stocks - the Russell 2000 jumped 2.7% last week, vs. a 1.3% gain in the S&P -  especially are being snapped up by "the guys who didn't get in when they should have gotten in" a few months ago.
Comments (8)
  • realornot
    , contributor
    Comments (1281) | Send Message
     
    When I see this sort of desperate buying. It is telling me the final top is here. It is almost like left overs stuff left on racks during Black Friday sale. You just grab whatever is left on shelves. Returns are definite. For stocks, an imminent big refunds are on its way.
    13 Dec 2010, 01:59 PM Reply Like
  • Duude
    , contributor
    Comments (3398) | Send Message
     
    Its been written about quite a bit over the last year and a half how retail investors have stuck with fixed income funds all this time. Now, these same fixed income funds are starting to see net redemptions while equity funds are seeing increased buying. We may see the end in January.
    13 Dec 2010, 02:04 PM Reply Like
  • Robert A. Graf
    , contributor
    Comments (58) | Send Message
     
    I noticed the increased activity in the RUT too. Today there is a sort of droopiness to the RUT while the DOW30 strengthens. Rotation to bigger caps perhaps?
    13 Dec 2010, 02:06 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    "investors"? what "investors"? Do you mean POMO with HFT pump for bonus pool ramping?

     

    A record consecutive "outflow" of funds was posted last week by retail investors, so who else is there? (read: primary dealers)
    13 Dec 2010, 02:07 PM Reply Like
  • radicall
    , contributor
    Comments (534) | Send Message
     
    outflows from bond funds. Inflows into stock funds. I still think you can buy RUT at 760, still got momentum into the year end.
    13 Dec 2010, 04:05 PM Reply Like
  • realornot
    , contributor
    Comments (1281) | Send Message
     
    I think 750 is a better buy RUT but then again you need to watch whether this is a steeper correction or not.
    13 Dec 2010, 06:18 PM Reply Like
  • radicall
    , contributor
    Comments (534) | Send Message
     
    Hi realornot,

     

    685 would be even better ;), but the technical pattern would be broken if it goes to 750. Where would you put your stop?

     

    At least personally I like to trade technically when trading futures so I can manage my downside risk.
    13 Dec 2010, 08:05 PM Reply Like
  • realornot
    , contributor
    Comments (1281) | Send Message
     
    Well, a better support level is @ 740 but likely won't get there this yr. 750 is the mid-line bounce off territory. 685 will become a major sell off. I doubt that will happen with that kind of sell off this yr. Remember, the FED is alive and pumping. Republicans cannot stop the FED just yet. Don't count on it that low this yr.
    13 Dec 2010, 10:16 PM Reply Like
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