Thursday, August 27, 2009

Is August Amateur Month in the Market?

Hans Palmstierna sends along this note:

Just stumbled upon another article from ZeroHedge, about how there are construction workers sitting at Starbucks who now think they are day-traders. I wonder if fundamentals are going to crack the entire stock market in half ... in September. Wouldn't an epic downturn fit ever so neatly in time if you compare it to other bear market rallies?

I can't believe there are huge numbers now trading the market. Whatever their size, though, they are an important factor in the current strength in the market. They will eventually run out of money, and without Fed pumping it's downhill from there.

This kind of man on the street talk reminds me a lot of a mini-version of what was going on in the real esate market when I wrote about it in 2004.

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