Forty percent of the volume is comprised of four used dogfood stocks

yes this is extremely true. in fact the volume is very misleading and liquidity has slowed down to an absolute crawl.

for example, the small/mid cap space which had 500++ stocks trading a range of 130cents and above in the first 2 weeks of last december, a traditionally slow month.
the last 4 months this space has only yielded 50-100 names.

this is absolutely atrocious, and is indicative of the investor's community faith in barack obama
 
this is absolutely atrocious, and is indicative of the investor's community faith in barack obama
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That's an interesting point.
 
Of course the braindead fed and the US government think everything is just dandy. They did some serious damage to the stock market in march in april. The real economy could never respond as fast credit spreads have collapsed.

There is no liquidity in the stock market at all.
 
Quote from nazzdack:

1) There can be a delusional hope that somehow, someway, the company will come back. There may be some "value" in the company that accountants and lawyers are trying to extract for themselves.
2) It can be easy to scare "shorts" out of the stock who are waiting for the company to be completely delisted once and for all, waiting for the last few pennies to the downside. :cool:
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More simply, there are always shorts who want to cash in, free up capital, move along to the next opportunity -- and don't mind leaving a few pennies on the table. Riding LEH down from $60 to 14 cents isn't much different from riding it down to 0.
 
Quote from ByLoSellHi:

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Remove SPY, ETFC and LEHMQ (none of which trade on the NYSE) from the list and you get 606 million shares.

How many shares have traded in total with one hour in?

1.491 billion.

Forty percent of the volume is comprised of four used dogfood stocks, just as we've seen for the last couple of weeks - all people passing shares back and forth among each other, many of it being "computer HFT games."

The other used dog-food stocks (LEHMQ and ETFC) are really no better; they just don't trade on the NYSE. Lehman is particularly ridiculous as that's a formally-bankrupt company!

Fannie (FNM) and Freddie (FRE) are two of the most outrageous abuses I've seen in a long time, second only to AIG (AIG). All three of these should be delisted as their equity value is quite literally bupkis.

This just goes to illustrate - the market is currently being levitated on literal trash. Again today we see the Casino trying to suck in people; I got emails from two more associates over the weekend telling me that their "advisors" are telling them "you have too much cash allocated; now is the time to buy."

Now is the time to buy, after a 50% move?! Where the hell were these so-called "advisors" at SPX 666!

Nobody - and I do mean nobody - is talking about what this sort of volume pattern means. Well, I will: this is the sort of pattern that precedes an all-on equity market collapse...

http://seekingalpha.com/article/159200-is-a-crash-impending?source=article_sb_popular
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The powers that be have a lot vesting in pushing the SP500 up. Everybody watches it as it is used a general proxy for global (nost just U.S.) business activity. Money losens up everywhere in a bull market.

The HFT theory might have some merit, however, the March bull run did get started with the dumb money capitulating. This indicates that pure supply and demand forces (intermediate term over sold conditions) may have been at play.

The Odd-lot purchase percentage chart says a lot. Since March, the dump money has been all over this thing trying to catch the turns (perhaps 401k holders trying to regain their losses).



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