18 November 2009
Market Tumbles FIVE Basis Points (S&P500)
No doubt you saw the headline number, the news that the S$P500 tumbled one point today.
There's a technical name for days like today when investors move the furniture around during the day but end up with a living room that looks the same. Things aren't as trendy as before. VMO is bullish but the other factors beta, EMO and PMO aren't working right now. I was at QWAFAFEW last night for a presentation by the quant analyst from BarCap. He pretty much confirmed what you already knew viz. even with the biggest selloff in our lifetime(s), it has been extraordinarily difficult to pick the market's direction. Not that hard if you use our long-short approach but again that's not for everyone.