Friday, September 3, 2010

Artificial Pricing?

Anyone watching the markets this week noticed a very strange anomaly. The closing prices on the indexes were always right on or near an exact technical market. There was not any volatility on the way up. It looked as if the market makers were absorbing every single sell order at the bid. You wondered if there were two sides to the market at all! I mean when you have a VIX at 21 to 25 you would expect some up and down movement. The indexes looked like paint drying. What does this mean? Does it mean that demand for stocks is so great that nobody wants to take any profit? Does it mean the pricing is being inflated with no real demand? Is this a "flash rally"? Is anybody out there? In my 16 years of trading, I have never seen such strange price movement.