So what happened today? Premarket (including first 5 minutes of the regular session when all the magical pre opening prices become 'real') up 0.8? 0.9%? Regular session after 9:35 AM down 1.1%?
Again, I call on Larry Summers to stop the regular market session. The actual matching of buyers and sellers in any volume (I believe they call that a 'free market') only hurts us. By closing shop at 9:30 AM the government can continue begin helping guide the market where it should be [Jan 6, 2010: Charles Biderman of TrimTabs Claims US Government Supporting Stock Market] in the 7 to 9:15 AM time frame (government help to make sure prices are 'corrected' from 'too low' levels is working like a charm in the housing market), and we can call it a day with positive closes 9 out of 10 days. Well technically there would be no closes 9 out of 10 days, since we'd never open. What's not to love? 401k balances would swell, pension funds would be able to deliver on their 8-9% assumption each year forever. And we'd all be rich via wealth effect. All that money 7M households no longer 'waste' spending on a mortgage could be rolled into the stock market. As an added bonus this leaves more times for shopping in those 6.5 newly freed hours each day, which is an added benefit to help the service economy.
I am available for consultation Larry - call me. I am all for efficiency and really it's only fair. Bernanke gives banks guaranteed risk free returns, so why does not the common man deserve the same in equities? If not for the market being open between 9:30 to 4:00 PM and allowing any form of liquidity over and above what can be done in the thinly traded premarket ($5B SPY can go a long way - wink wink), we could have Dow 18,000 by now.
p.s. I also recommend releasing all good economic data between 7 AM and 9:15 AM so we can say look there is a great reason for the S&P to be up 0.8% in premarket, whereas releasing all bad economic data around 3 AM EST. Then of course when futures react negatively we can begin 'God's work' at 7 AM.
p.s.s. If we must keep the facade of a market between 9:30 AM and 4 PM, I propose a ban on selling in those hours. But of course allowed during premarket when 'market forces' can offset it (hint). There are many ways to handle this Larry - think outside the box.
Until tomorrow! (premarket!)