Hedge funds are closing down.

Here is a short but interesting article on how hedge funds (which are anything but hedges anymore, they are more like super leveraged longs) are closing down.  Not enough opportunity anymore it seems and so the smart money is sneaking out the back door of the Ponzi markets.  Again, no Ponzi plateaus.  When the energy source runs out (in this case leveraged market debt which is the stock in trade of the hedge funds), the Ponzi goes into reverse.

All of this hedge fund action is happening  while prices continue to trend higher on very thin volume.  Open elevator shafts await the unwary going forward.  Very few if any in the main stream media are talking about the declining volume of the markets but low volume means not enough buyers to catch even relatively small volume sales like happened on AAPL shares yesterday.  The result is wild swings as the sellers cash in.  This is why all the smart guys out there are calling for higher volatility.  Thinly traded markets always make for larger spreads and higher volatility.