Friday, December 30, 2011

Done for the year. The DJIA finishes 2011 up about 5%, the small-caps finish down about 5% and the Nasdaq and S&P 500 are somewhere in between. 2011 was a year when the trading was often dominated by news headlines, particularly about Europe, but the biggest difference this year had to do with the structural changes in the way that things traded. The tight correlation between individual stocks, the dominance of ETFs and computerized trading, the lack of leadership and the soft momentum required plenty of adaptation to stay a step ahead.