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Re: Is it just me, or is the market dead?



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>I'm beginning to wonder if the ease of entry access brought on by
>e-brokers is increasing the volume and decreasing the intraday ranges
>as traders enter and take profits in shorter timespans.

I'm not so sure about that.  The S&P futures markets are derived
(or related to) the cash index.  They'll have similar daily ranges.
The cash index is a weighted average of the price movements of 500
stocks.  I have doubts that the movements of those stocks (many of
which are fairly large) are dominated by daytraders taking intraday
profits - any individual large-cap stock is simply not a suitable
vehicle for daytrading.  I'll bet those movements are more affected
by position traders, the largest of which are mutual funds.

I do think the small swings of the present, as opposed to the big
swings of the past, have something to do with a greater flow of
information, greater availability of data, resulting in greater
efficiency, which will make the noise amplitude smaller.  This
is related to e-trading, but I think one will find a correlation
between the shrinkage of the daily range and the growth of the
internet.

-Alex