Lack of Vol and Mark to Market

A

Ayn Rand

Not a big fan of Jim Cramer but this article is at the heart of what is going on in the market -

Jim Cramer: The Common Stock Buyer Seems to Have Disappeared
We have, for lack of a better term, what acts to be a 'broken' market - both ways - because the volume is so thin.

https://realmoney.thestreet.com/jim...ed-14805582?puc=yahoo&cm_ven=YAHOO&yptr=yahoo

Perfect competition is predicated on there being a large number of small buyers and sellers such that no one party can directly influence price. This condition has not existed in a very long time.

Also there is mark to market. It is possible that the last trade of 100 shares influences the value to all outstanding shares - when all outstanding shares is in the millions or even hundreds of millions. This is a trick that Warren Buffet uses. He has very large positions in a few stocks and if need be can move the value of his holding for a fraction of his outstanding position.

There are many times over the course of the trading day when this lack of volume plays hell on options markets where a very small amount of actual shares traded can really impact the price of options.





 
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This selloff does look different, than FEB sell off.This selloff has much better sell volume, than buy volume.I dont mind getting paid on a weak uptrend.And QQQ did uptick a bit on last day of NOV.Small caps , GE, C, BAC are weaker than normal; but SPY could finish up a bit for year. Not an uptrend prediction..........This selloff also does look much different for GE, as it gets closer to $00.00:cool::cool:
 
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