Thursday, May 30, 2013

Everybody is a Momentum Player

"I'm not a believer in the manipulation theory. I'm not a believer in all the conspiracy theories. I'm a believer that the market went down because there was a technical break and also because stocks are so strong. So, when people look at their gold and they look at the stock market that goes up every day, they then decide ‘Gold is dead. Let’s buy stocks’ because, at heart nowadays, everybody is a momentum player. The fund managers who must outperform the index, the hedge fund guys, the high-velocity trading people, the algorithmic people – they’re all momentum players. What moves up, they chase. What moves down, they sell."

- Source, Business Insider:

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