Stock market is ‘getting bigger’ with new trading pattern, trading software
A stock market that is growing faster than expected is not necessarily a good sign for a trading company.
That’s according to a recent analysis of trading patterns that show that more than 70% of stock market trades are now happening using software called “trading patterns.”
“There is an increase in the use of trading strategies that are not based on fundamental analysis, such as trading patterns,” says Michael Tullock, founder and CEO of trading firm Axios.
The report is the latest in a growing trend of analysts and investors looking at trading patterns in order to make predictions about where the market will go next.
It’s a trend that was driven by the market crash of 2014, when stocks fell by more than 60% and the technology bubble popped.
In 2016, the markets are now trading at a 2% annualized return.
For more: The Dow Jones Industrial Average and S&P 500 have both rallied more than 200% this year, but have been down about 20% this month, according to the S&p 500 index.