Tagged: Russell indexes

Take the Pulse of Your Stock

Coming to NIRI National 2011 next week? Please visit us at Booth 304! We have no helicopter rides or trips to the Bahamas to give, but we do have a really cool microfiber for keeping those ubiquitous touchscreen pads and smartphones sharp.

June launched by kicking markets right in the rump. We blamed economic data. It’s true but not that simple. Behind the data at the behavioral level, institutions decided against equities roughly May 13. We don’t make this up, we just observe it in the way trades execute. When methodologies, purposes or time horizons change, it manifests in trade executions.

Money didn’t hedge with options expirations May 18-20 either. If you decide not to insure your house against loss, what might that mean? That you expect to sell it shortly, that risk is nonexistent, or that insurance is too darned expensive. As an analogy, two of those three are negatives and the middle one doesn’t exist on Wall Street.

(more…)