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Message: [QUOTE="djct1999, post: 3544807, member: 2281"] Now more than ever, I have a hard time of making any sense of market moves. With 85% of daily volume driven by algos, we are at the mercy of computer programs reliant on mathematics. They are programmed to push the markets to its limits. They sell weakness and buy strength, which is why we rarely see intraday swings, unless news hits. What makes things worse, is that as sophisticated as some of these algos are, there is also a commonality to it all. The only variable that's really different is the beta they assign to each name. So most of these strategies have very similar portfolios. If one feels pressure, if one delevers, they all do. This puts immense strain on the overall market. Often times, its nearly impossible for the human eye to even detect. Or its too late. Its also why we overshoot. The last leg down in March was just that. Quant strategies were forced to move to new regime and delevered. The quick snap back was simple mean reversion. My guess is we are now trading at fair value for time being and will most likely stay in a tight range throughout the next quarter. Worst case scenario is somewhat priced in and the Fed has publicly created a floor. Once the economy gets back on its feet, look for another spike upwards. Until then, I think we move sideways. I learned the hard way in 2008/09 to never fight the Fed and I know personally to never fight a computer algo. The names recommended on here all seem good. My adivce, forget investing in single names. Put your money and the SPX and over the long term maximize your return. [/QUOTE]

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