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Zacks Investment Research’s Jared Levy on the outlook for the markets and the impact of Knight Capital on investor confidence.
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Thank you well while stocks are sharply higher today breaking a four day losing streak check this out.
But is the better than expected jobs report really the reason for this rally let -- and Jared Levy the senior equity strategist for jet that.
I'm sorry but I can't say -- today Zacks investment research.
-- if it did the jobs number the made these stocks go to the sky.
I don't think so -- you know I think partially and you know all your guess -- -- a great point you brought up a great point earlier we talked about the participation rate.
The Reagan era I mean you're talking a whole different world first of all.
Money is not made the way it was in the eighties jobs aren't conducted a business's that you've got -- the weighted what's in the eighties everything is done now.
-- computer a lot of -- revenues derived internationally.
The drive today the market rallied today yeah I think -- knee jerk reaction without the jobs number but you know committed -- this Jerry.
A lot of people have been have been short -- -- if you look at short interest and some like it Dow Jones yes I'm betting odds are that down.
Right and what they're doing now it was -- -- -- is big drop all these people that are sure they're covering their -- because they're gonna get what's on a margin call which is not fun today.
Accelerate that rally -- feeling.
Have a feeling next week you probably see a bit of a pullback in a -- it's a topic.
Paul is running out I what -- onto -- -- another topic though that I know your red hot on.
And advance the debts the company called Knight trading that lost four and forty million dollars and I've had sort of brought everybody to their needs is causing individual investors across the country to say.
-- my goodness I can't trust this market what do you say about this.
I don't think -- need to take -- trust out of the marketplace and just understand this about Knight capital night is a market maker primarily in other words it's their job to buy and sell.
-- -- the public Gerry you gonna buy stop yourself -- -- Their computers essentially eight themselves if it were calling it you know they were they were buying high selling hello.
Because they want to have a funny because in their numbers.
It's true I mean it's a shame and into shape you're gonna lose -- jobs over the executive -- -- little tired but here's the but don't be scared I -- don't they scare the market place.
Well -- did you go early did you this though are are you what do you think about computerized trading is it causing problems for the market -- -- it seems to be that's for darn sure.
Are we gonna have more of these kind of breaks in the market word things go haywire.
I think that people need to realize the computers are fantastic for modeling different plastic figure value.
They should not.
Have the ability to push the button.
They do not possess logic.
They do not have a thought process always think about.
Is what numbers are going into it just don't put your finger on the button you know Alex that's -- they should be able to just derive value well we are gonna have more hiccups like that -- are you saying that because you're human trader and -- really basically competing with with the computerized trading.
I can't I can't get it anymore Gerry I'd ever been ninety's I left the floor -- to the night trading put me out of business.
-- and it's funny when it was happening we stood up we think you know.
They need to be humans in the middle and and the CME actually kept you know they held their ground at -- and the SEC said no no this is good for the customer make things happen quicker yet quicker.
But if you're not thinking about it.
Big big things big mistake for this to happen.
Well well I was really to stabilize and a lot of individual investors out there.
May not spooked but an easy -- Jarrett thanks for coming on tonight appreciate your time thanks Jerry.
