I blogged a few times last year that retail stock trading had jumped the shark - meaning it has gone into stupid territory to mark the beginning of its end. Here is the link to the last one http://quicktakespro.blogspot.com/2009/11/this-is-why-market-will-eventually.html.
Now that Merrill Lynch is getting into the discount brokerage game - as existing players languish and just as the report comes out that retail volume is down 30% this month. Once again, Merrill is late to the game. Didn;t they close their commodities trading unit in 2001 - just before the CRB index took off?
A great contrarian indicator in any market.
3 comments:
The Lind Waldock commercial is always good for a laugh... The one where the guy looks all sad and disappointed because he's losing money on stocks. Then a random buddy tells him to trade commodities instead. They have "more volatility" and "always have value" unlike some stocks. The physical commodity might, but not the futures...
Translation: come one all the mom and pops investor hopefuls, here is some snake oil shtick, now lose whatever you didn't lose in 2008 while we make a few hundred bucks in commissions. Never mind the fact that 90% or futures accounts receive margin calls and are closed in less than one year...
So far this still looks like a 3 swing corrective structure within an implusive advance. The counter trends have been weak so far.
Many stocks that I follow in the UK, US seem to be showing similar structures. Very hard to find 3 swing corrective sell structures.
As for the stats on futures trading the 90% have obviously not heard of the stack trade 1 point futures trading system! Michael's been at it for 25 years.
MrWave, I take it your are an Elliott-head. EWI thinks the whole bull market from March 2009 was corrective and that it has already peaked.
I think it is over, too. Canyou give a solid example of your point of view (specific stock)? I'd love to learn more.
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