The market has been grinding sideways for more than 8 months now.
Day traders are losing fistfuls of dollars. The ranges are just so small that there is no real opportunity. But, according to our resident chart analyst Murray Dawes, the algorithms are having a field day. By that he means the automated trading platforms that now make up the bulk of trading in the market.
'Robo-traders' – if they had feelings – would be pretty smug right now. In recent months they've been shoving the market around and squeezing traders out of their positions. Murray says these trading machines are profiting in an overall flat market by "fishing for stoppies".
This is creating price action that is just not normal.
"I don't believe there are many traders who are playing, quite frankly. I have heard that a lot of the old hands from the futures floor days are hanging up their boots. They are sick of a market driven by computers. The potential to make money intra-day trading has diminished substantially."
DON'T GET CAUGHT UP IN THIS SSN'ERS
SSN Price at posting:
9.3¢ Sentiment: LT Buy Disclosure: Held
