Quote:
Originally Posted by Caymus
Does the robot consider increases in theft? I notice that Dick's is down over 20% this morning based on theft concerns.
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doubtful, but so far what ever the robots saw, hasn't materialized yet, and I closed out my longs this morning. .
Interestingly, the robots are programmed to buy stocks at extremely undervalued prices, which can be more reasonably programmed versus an over valued overhyped stock where the fundamentals don't matter. . bargains can be programmed as a value play, bubbles cannot be. .
CA theft is ridiculous, and all the stores should leave CA and see how the government and their constituents like the results of their decisions.
The other point to remember is that Passive ETFS buy and hold and are price INSENSITIVE. . . so who then causes price movement? active fund managers. .
as passive is about 50% of the stock ownership, active owns the rest, and active as a percentage of tradeable float, which is total float minus passive holdings, creates increased volatility, due to 50% of the float being tradeable. .
So where as Dick's might have been a 10% correction today, it turned into a 20% correction due to about 50% of the shares being held in passive accounts. . who don't care what the price is. .
This is where an individual stock has a much higher event risk stock movement, as seen today with Dicks, which is why the diversified ETF by industry is always the better purchase. .