Increased Day Trading Activities

Market fluctuates on news but ends at lower level than last week. Trading volume increases due to more day trading activities. Market makers have profited from the seven consecutive weeks of declining stock values and are currently sitting on pile of cash with some fast volume trading. Day traders take the turn to speculate further market decline. However the strategy is to sell on rebound. There seems to be not much aggressive stock shorting at this moment as compared to the heavy shorting during financial crisis. Individual investors have offloaded the non-core portion of the portfolio, waiting for re-entry point. Market markers refrain from selling and there appears to be absent of catalyst for panic selling. Long term investors find opportunity to accumulate in small quantities. It may need a strong reason to shake out the holding of individual investors who have ridden the wave after the financial crisis. For those who have completely gotten out of equity stock market will stay out for years to come, regardless of market direction. They will remain supporters of the treasuries and bond market for the stable return. This also provides support for a low interest rate on treasuries after the Federal Reserve bond buying program ends in June.

Speculators are looking for quick profit in this turbulent market. This creates the condition for wealth transfer amid a global society with escalating productivity. On the other hand, continual technological innovation increases demand for skillful workers while reduces the need for general labour. Also, industrialization comes along with environmental pollution and habitat destruction. The polarization of workers skill also widens the gap between the groups resulting in concentration of wealth. The symptom is intensified after the financial crisis. Total wealth have already surpassed the peak before financial crisis. The sales of luxury merchandise is soaring. On the other hand, grassroots economy is muddling through in a cloud of uncertainties. Traders use the looming of a fragile employment environment for population at large to manipulate the market.



Where the Rich Are Keeping Their Money
There are more rich people today than ever before, and they are richer than ever before. The number of people with more than $1 million of investable assets jumped 8.3% last year to 10.9 million, their total wealth booming 10% to $42.7 trillion. That surpassed the previous peak in 2007. Recession? What recession?

Why the Rich Get Richer? What’s Worse Than a Depression?
There's also a growing chorus of experts who are warning of our greatest fear, a depression either in the form of hyperinflation like the German Weimar Republic experienced in the 1920s, or a deflationary depression like the Great Depression.