Posted by: jhamon | July 23, 2009

Market Rallies In The Face Of Outflows. A Good Thing?

Joe Saluzzi of Themis Trading, whom I don’t know personally, just seems to be a stand-up guy.  He shares freely with plenty of really good insight into current market dynamics (e.g. the fun and games I discussed in my post The Future is High Frequency Trading.  NOT)

Joe pointed out some data from ICI that I found very quite telling – I’ve highlighted the interesting part below: 

Equities Funds Outflows

Equities Funds Outflows (source:

Last week (ending 7/15) saw net outflows of nearly $2 billion from equities funds, yet the market rallied.  Think about that: the market rose as people withdrew a big chunk of change. 

And so, ladies and gentlemen, it’s everyone’s favorite time because we come once again to…

Common Sense Exam #4:

When a market rally occurs with a decreasing number of dollars chasing it, that is:

  1. A sign of strength and Things Are Seriously Right!
  2. A sign of weakness and Things Are Seriously Wrong!, or
  3. I have no clue because I have no common sense.

You have 10 seconds.  Go!

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