Back to Normal?

by Larry Levin

After just two days of increased volatility last week and a near ONE TRILLION dollar bailout package for European banksters (as well as US taxpayer support via the IMF), the market may have already gone back to normal: the SKYNET computers are in charge. I could swear I heard sometime near last Thursdy's close "I'll be back."

Today the SKYNET mainframe was back - firmly plugged into its power source - lifting every offer in the book on LOW volume. When the volume is elevated, the market goes down. When volume is light and the normal apathy reigns, the computers take over: HFT and other assorted algorithmic front running of the public ensues.

So is the market back to the low volume trading days where it rallies daily via computer programs? I don't know; I believe the majority of the answer lies with the Europeans. But there really isn't one question to be answered. There are many. Here are just a few...

1. Will Brown's resignation in the U.K. cause problems for the bankster bailouts?

2. Will Irish protesters storm Parliament again in opposition to the bankster bailouts? Will they intensify?

3. Other than the money from the IMF, where exactly will the rest of the near $1 trillion amount of cash come from?

4. Will all of the countries in Europe agree to their austerity measures? If not, the bailout is a joke.

5. Will Greece be downgraded again? Will Greek riots intensify?

6. Will the Euro be supported? After all, that is what the announcement was supposed to do: support the euro. That, however, has already failed as the Euro has plummeted from its post announcement pop.

7. Will the German people agree to this?

8. Will the US Federal Reserve lose money on its so-called swap lines to these European nations when the currency that we swap the US dollar with- the Euro - is falling like a stone? Will anyone in the US care or is American Idol still on?

9. Does a bankrupt Fannie Mae and Freddie Mac matter?
1. Does legalized accounting fraud matter?

Since none of these questions will matter as long as the HFT computers are driving equities higher on low volume, there is no need to consider them. Why worry about anything today when one can put it off until tomorrow? Amerika can go back to Dancing With The (B-list) Stars and American Idol.

Nothing to see here. The SKYNET mainframe --- Goldman Sachs --- is in charge...all will be well.

Previous Day's Trading Room Results:

Trade Date: 5/11/10

E-Mini S&P Trades*
(before fees and commissions):

1) VA sell @ 2:35pm at 1157.00 = +.75, +1.00, -.50 (3 lots)

2) Algorithm positions (9)

3) “Reading the Tape” positions (19) …combined Secret’s, Algo, & “Reading the Tape” total…-2.50



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