etfmsolutions: Complete Reversal....12.02.14

Tuesday, December 2, 2014

Complete Reversal....12.02.14

The markets did a 180 today changing from a full blown bear to a full blown bull. Now we need to have some follow through to confirm the expected bull run in the December.
On the worry side...consider yesterday's action in Apple which lost 3% or $28 billion worth of net worth by the end of the day. What's worrisome is the early morning program trading glitch where Apple lost an additional 3% in the course of 2 minutes ( that happened on 16.5 million shares of Apple trading within 2 minutes). If this type of carnage can occur in just Apple imagine the fallout if this volatility spread across the markets for an hour or so, now imagine a day of such chaos.
Keep in mind that over 75% of typical daily trading volume is auto execution, high frequency trading with no one at the controls.
On days like yesterday that percentage jumps a few points as the trading robots go into hype drive.
Sleep well my friends.

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Mosaic Solutions commentary is typically published daily as time permits and market action warrants.
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