As Shorts got Occupied, markets head lower on no volume
Market in full retard Mean Reversion mood. With absolutely no real volumes traded out there, markets are flip flopping. From squeeze to mini flash crashes. DAX moves 1% while you go for a coffee. These no trend, no volume, only HFT driven moves, are not good for markets. We still see the biggest factor for cautiosness, being the market microstructure. There should not be too many serious fund managers wanting to put capital at work in this illiquid HFT driven market. Wonder what would happen if SPX traded below 1200 today?
and the DAX…
Very keen observation on your 1200 spx call today. Hit the nail on the head.
As always, this continues to be the most accurate and insightful website that I read.
Nice work.
We’ve gone from BTFD to STFR in one short day. I’m not sure if this is a repeat of 2008, but macro economics don’t look good.