Bar Rescue is a late night guilty pleasure of mine. So, when Fox Biz called and asked if I would spend some time on the show Jon was hosting, I jumped.
Feeling introspective, I realized something about the wild market movements of the past few weeks. I made a weak bear case to show the tremendous effort it takes to pull down earnings fast enough to justify the Christmas Eve prices – of which, I did buy for all our clients. Why? I don’t believe the bear case. Neither do most in the business nor most of our clients. I pulled the trigger to buy on Monday’s low of 2350 on the S&P 500. My hand got a little sweaty when I pulled the trigger, but that only proves I’m human.
During the interview, I told Jon what I really thought. We don’t need justification of a bearish fundamental case to explain the market’s action. Eight-five percent of the volume is computerized algorithmic trading (a computer program that only looks at price and not fundamentals).
I think, computers don’t. Let computers stretch the prices too high and too low. I’ll have my “buy prices” set ahead of time. So, rejoice in the volatility. It proves markets work, and that those patient with trades succeed in the end.