THE HOT MONEY IS NOW FAST MONEY...TRYING TO "CAPTURE" SMALL GAINS IN A NANOSECOND...
HIGH FREQUENCY TRADING IS NOW 60% OF TRADING VOLUME...!
BUT THE PROBLEM WITH HOT MONEY AND NOW WITH FAST HOT MONEY IS THAT IT RELIES ALMOST SOLELY ON "GROUP THINK".... IT'S ESSENTIALLY THE ULTIMATE IN MOMO TRADING...
WHAT HAPPENS WHEN INFLECTION POINTS ARE REACHED...LIKE FOR EXAMPLE DOW 10,000 WHERE THE GROUP THINK SAYS...SELL NOW...CAPTURE PROFITS...REENTER AFTER THE DECLINE...
WELL...I'D SAY DOW 10,000 COULD SPAWN A 500 POINT PANIC DROP...AS EVERYONE EXITS EN MASSE...WITH THE NOTION THAT THEY CAN "BUY THE DIP" LATER...!
