By Sell Puts
The market has not moved outside of its current channel in over six months, "volume down market up" as zerohedge puts it, has been the theme nearly every day where the market struggles for a trend. This phenomenon occurs most frequently when the market enters into a drifting channel usually during the middle three hours of the trading day when volume is normally lowest.
Clearly something is wrong with the picture. Who is the entity buying into the high frequency selling every day? I cannot say for sure though i believe it could programs clamoring for pennies when real human traders were clamoring for dollars.
Retail is 90% gone, it is now computers pushing each others bids and offers around, somethings gotta give. Up or down.. The market needs need confirmation of sentiment.*idea: Ban high Frenqs and or institute a minimum holding time for securities. Once the regulation occurs potential market participants(retail) will get a glimpse behind the curtain. Once the street knows the playing field is level again, bids will come back and markets will once again rise on high volume and all on low volume. Until then, the death spiral will continue.
