patrick.net

Clueless.

Actually, the resurgence of leveraged day trading (along with wicked gyrations in the bond markets) is a huge warning sign that something already has seriously gone wrong.

You've outdone yourself this time. I assure you, tens of thousands of day traders leveraged much more than 300% have always been around, for decades anyway.

But some things never change. Volatility get's excessive and it's their fault.

When we start having all kinds of laws against short term trading, that's when you will know the market is REALLY rigged.

Were you by chance one of those complaining about futures and options traders when the 1987 crash occurred ?

Clearly you cannot read?
Where did I blame the day traders?
I didn't.
Mish

Okay. Well first off, I'm amazed that you have actually commented, under your own name no less.

Secondly, I guess day traders "controlling the Nikkei" sounded to me like you were implying more than you were, and exaggerating for that matter, as obviously day traders can't control a market, at least not for long, and not without having their heads handed to them.

I will acknowledge that I read it quickly and may have made the wrong inference.

??

With speculators borrowing millions to day trade on 300% leverage utilizing an "endless" supply of margin, and some utility stocks swing 7% every day ... inquiring minds may be asking "what can possibly go wrong with that?"

You are implying that overly leveraged day tading is dangerous. No ?

And yet stock futures and stock index futures, and options can be far more leveraged.

MAybe you are just trying to alert some people to some trading opportunities, in the hope of decreasing the volatility