Buy Program Express Lifts Markets: Dave's Daily

The economic news from the unemployment report could not be worse and an old pattern was repeated -- higher volume on a selloff followed by an engineered "stick save"� into the close. It used to be hard to make this stuff up, now it's becoming routine. As noted yesterday, bulls might like bad data since they'd expect another round of quantitative easing (QE2) from the Fed and a politically desperate administration. This means more liquidity baby and an opportunity to lift stocks to new highs. That's the thinking from bizzaro-land.

So we get another big intraday 150 point swing in the DJIA as the "2:15 PM Buy Program Express"� hits the tape on time as volume starts to dry up. That's why the caution sign advises to stay away from the Program Trading Express.

Nevertheless, volume increased Friday with most of that coming early and often. Breadth was negative but not overwhelmingly so.

 

SPY: Bulls saved the week despite terrible economic data and mostly as expected earnings news. Earnings news will end for the most part next week leaving bulls with only their HAL 9000s and a firm belief further stimulus is at hand. If that should happen it wouldn't surprise to see Da Boyz sell that news.

MDY & IWM: It was an impressive week for Mid-Caps, but not so much for Smallies since they're more sensitive to economic data. Sure, I know, they get manipulated by the machines as well but not nearly as easily as the bigger names.

 

 

QQQQ: A good week on continuing light volume. Remember, we've seen heavy volume as retail exits in a panic while light volume melt-ups follow from trading desks and HFTs.

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