What do you do when fundamental analysis and research reports don't make sense? Today’s market in September of 2010 is full of volatility for a variety of reasons. Lets focus on Algorithmic Trading and the concept of Artificial Demand.
Apparently the world is using computers and algorithms to execute transactions in seconds. The machines can be programmed to watch a variety of variables like money flows, technical charts, economic indicators, earnings reports,etc. They are currently responsible for 75% of the volume in the financial markets. This fact has us very concerned about lack of human control over this automated system. The fundamental question comes back to VALUATION MODELS and FAIR MARKET VALUE
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