Wednesday, September 23, 2009

Funny Money too needs to be profitable (Sept 23, 2009)

Seeing a lot of funny money in action...? Getting frustrated with stationary market action?
Don't worry, funny money too will one day realize that what they do won't be profitable for them.

There is this perception that, organizations that use funny money to pump this market up can keep doing this forever until the market reaches the moon.... lol. I don't believe so!

Imagine if you were a market maker (MM) trying to get the so called "money on the sidelines" to join in the rally and then sell at higher prices....What will MM be feeling now if no "money on the sidelines" wants to participate at these prices...? Wait until next year? What will MMs do next...?

Hah....there is no need to guess...its just pure common sense.....I see MMs will eventually be forced to "bring prices down to more acceptable levels".

So folks be cautious, don't get overly bullish....for MMs (bull tards) to remain profitable....They need the market to participate...or else they will just be wasting their money propping this market up.

In the coming months, if the market continue like this. I think the options market and stock market will experience significant decrease in volume. When that happens, funny money will have to adopt a new approach.

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