Skip to comments.Who's Minding Your Mutual Fund?
Posted on 11/03/2003 4:39:19 PM PST by abnegationEdited on 04/22/2004 12:37:40 AM PDT by Jim Robinson. [history]
Another day, another complicated financial scandal. This time it's mutual funds.
Apparently some of them are giving preferential treatment to certain customers to trade their shares when average slobs like us could not.
Some in the industry are shocked at the fallout. I'm shocked they're shocked.
(Excerpt) Read more at foxnews.com ...
"Lowrys Investor Services believes the key to the markets this week will be to see if stocks retain their early morning gains at the end of each day. Lowrys is looking to see if there is a meaningful follow through for the rest of the week. Most of the markets gains occur early in the day, right out of the futures pits. More of these rallies have taken on the shape of a rising flagpole, occurring suddenly and forcefully at the markets open and then lingering there the rest of the day. Nothing has been gradual.
The technical advisory firm has noticed a number of divergences occurring at the same time. Its Buying Power Index has not been making new highs ahead of market advances as in the past. Downside volume in the market also shows that investors are becoming more aggressive in profit taking. Furthermore, Lowrys exclusive Advance-Decline Line, which removes the influence of bond and fixed income related equities from it, has not made new highs as the market has advanced. There are a number of divergences that are now occurring simultaneously which tells us that a major trend change is in the making."