The Fakeness of the US Economy/Market/Computer Traders

So the last 3 days have been the biggest 3 day run since the 1930s. And why?


Not one company is better off than they were 4 days ago. Not one is making more, announced a new life changing product, nothing tangible.

30% of the country is shut down, case and deaths keep going up.


This is bull ■■■■■

I think this would be better titled “The Fakeness of the Market.”

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Happy now?

I would suggest: The computer-trading controlled Market”.

I would have been happier if I bought big into this recent bottom :smile:

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Very true.

I don’t think it’s going to fit.

Those damm algorithms!

We should deport them and send them back to Algor - pronto!

The economy is largely just a social game with arbitrary rules. I don’t see how computer trading makes it any more or less of a social game.

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I personally don’t think those companies were losing much except maybe hotels and airlines. The tech, auto and manufacturing etc were on holding pattern IMO. Those that work at those places lost their wages. But when it’s all over people are still going to need things. They just put it off.

I could see stock going down 10/15 percent but not third like it did. But again it was mostly media hype driven for political reasons.

Everybody is guessing at how bad it will or wont be over the next year. Thus, the huge jumps or collapses.
Few facts are available re the future.

My abbreviated version: 40% + of all $ in the market are computer traded. Algorithms are designed to make money whether market is going up or down. Only stagnant is bad. They cause market to go up then down then up (reason for all the voluntarily - long before the virus). Algorithms create trends then trade based on those trends. Sometimes this trend cycles only last for a few minutes. Humans left reacting to their nonsensical (to humans) trends. Computers always win, humans win from time to time but usually only long periods of time. SEC is investigating the problem and maybe in a year or so we’ll find out if this is our world forever or whether some controls will be placed on computer trading.

No doubt. The market is driven by “worries and fears.” Paranoia.

For day trading…maybe…but in the long term, companies that are generating a lot of revenue, profit or are believed to have a high potential of doing so in the future are going to perform well and companies that don’t generate a lot of revenue or profit or have a bleak outlook are going to perform bad.

The computer algorithms are simply predicting the fluctuations more efficiently, not the overall direction.

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People buy or sell stocks based on what they think is going to happen in the future. When the country was shutdown people saw that would affect business revenue so sold off. When the stimulus was passed then they saw that would mitigate some of the losses so they bought.

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Disagree. Computers create short term trends within long term trends. Then they start following othe computer decisions. Creates enormous swings in the markets. But I do agree that long term trends eventually prevail, hence the positive long term impact on the market since Trump won the election.

The majority of those trades were not made by people.

People programmed the algorithms

Yes they did. Therefore…???