Wall Street: The Stupidest People on Earth

Wall Street (the Stupidest People on Earth) has now caused my audited accuracy rating to rise to 99.5%. See yesterday's entry where I TOLD you (I am not above saying " I told you so") that anyone who continued to buy stocks as the Dow rose 200 points is one of those Stupidest People on Earth. It is not like this does not happen over and over. Einstein's definition of insanity: "Doing something that has failed over and over, with the expectation of a different result."


Yep. The Dow is down 84 as this is being written, as stocks predictably back off from the fictional computer gaming excess of yesterday's up move. Again, I told you this in foresight, and not hindsight. Plus, the Marketwatch.com headline was so stupid (probably anticipating the reaction of Rush Limbaugh and the rest, who either do not understand the market or pretend not to for partisan reasons): "Obama fails to impress market". One of the reasons that the magnitude of yesterday's up move was so very stupid is that it was in ANTICIPATION of Obama's speech (outlines of which were known), as well as the computer trading programs being triggered by Ben Bernanke's statment that the recession should end by the end of this year (as if Bernanke has been right on the economy, and as if that is such a "good" prediction).


This is really the very same thing that happened (and that I again called at the time) when Obama was elected. The computer program trading drove the market up BEFORE the election, and then promptly drove it DOWN after the election. Present Wall Street mantra: Buy on the rumor (or "dip"), and sell on the "news" (or rise).


It is as if Wall Street traders, and commentators, do not understand this. It is why Wall Street people are the Stupidest People on Earth (refusing to learn).


P.S. Nope. It does not matter if the market turns around today, in one of those whipsaw moves, and goes back up. You could still have bought stocks this morning cheaper than you could have near the top of this fictional, excess up move yesterday afternoon. I am not telling you that I can predict the direction the market is going to go, or where it will end up. I am simply telling you that these exaggerated, fictional moves created by momentum, computer program trading are proof that Wall Street people are the Stupidest People on Earth. WHO is buying as the Dow rises more than 200 points in a single day? Selling should come into the market every time the market makes one of these fictional (in magnitude) up moves. That selling does not come in to moderate these excess gyrations (or buying on downside moves) is evidence of a SICK stock market dominated by the Stupidest People on Earth.