Nasdaq ends higher on the day
The major indices got hammered in the early hours of the day, but the around midday, Omega Advisor's Leon Cooerman got on CNBC and complained about momentum/algo traders, going as far as saying anyone who trades off a chart (or something other than his opinion of fundamentals), should be investigated by the SEC and thrown in jail (well he did not say "jail" but being investigated because you sell on the break of a 100 or 200 day MA? Come on).
I don't know....I don't get it when capitalism and free markets have ambiguous definitions dependent on positions. To me it sounds like sour grapes,
I mean heck, when the market was moving up 30%+ in 2017 maybe some of it was helped by the same algo traders he bemoans now.
Yes....the earnings because of things like huge corporate tax cuts did help the convergence of a fair price to valuation, but there won't be another tax cut, trade policy and slower global growth could lead to slower growth and lower earnings and stock valuations down the road. Who is to say, the sell off or yield curve flattening won't lead to a slowdown? It is always brightest just before it starts to get dark and the economy has been been pretty bright for a while now.
In any case, the market heeded his words and the major indices moved higher and off their lows.
At the end of the day, the indices are mixed:
- The S&P index fell -4.11 points or-0.15% at 2695.95 (within a point of the day highs). The low was way down at 2621.53.
- The Nasdaq index rose 29.832 points or +0.42% at 7188.25. It too closed within a point of the high. The low was at 6984.344
- The Dow closed down -79 points or -0.32% at 24947.62. The low for it, was down at 24242.22.
The S&P and Nasdaq escaped going negative on the day. The S&P end of 2017 close was at 2673. The Dow end of year closing level was at 24,719. At the lows, the indices were well below those levels but each are closing above them at the close.
