Whenever market tops, insides and institution exist first very discreetly to avoid leaving any foot print that can cause selling panic
All corrections always start with small exits because once sentiment turns.
When the selling start then buyers vanish and so price goes over the waterfall and crashes on the rocks below (accompanied by the screams of all the punters who reckoned they'd exit at the top).
The coming sell-ff will be very violent and much worse than anything you've seen in the past. Because ALGOs are perfect machines for upside and downside.
The index funds dominated the 2019-2020 volumes and when shares of the index are sold, every stock within the index (good, bad and ugly) gets sold that triggers ALGOs to sell everything trapping anyone who still delusional about "buy the dip".
"Central banks have generated a mesmerizing moral-hazard propaganda field that implicitly suggests "we'll never stocks go down again, ever!" Yet the only way central banks can causally intervene is to buy stocks directly in size, i.e. in the trillions of dollars. (Recall U.S. stocks are around $35 trillion, global stock markets about $85 trillion. Yes, buying futures contracts through proxies works in stable markets, but not so much in panic cascades of selling." Hugh Smith
Feel free to use my STDEV scripts to spot the insider selling strength published on Tradingview.
All corrections always start with small exits because once sentiment turns.
When the selling start then buyers vanish and so price goes over the waterfall and crashes on the rocks below (accompanied by the screams of all the punters who reckoned they'd exit at the top).
The coming sell-ff will be very violent and much worse than anything you've seen in the past. Because ALGOs are perfect machines for upside and downside.
The index funds dominated the 2019-2020 volumes and when shares of the index are sold, every stock within the index (good, bad and ugly) gets sold that triggers ALGOs to sell everything trapping anyone who still delusional about "buy the dip".
"Central banks have generated a mesmerizing moral-hazard propaganda field that implicitly suggests "we'll never stocks go down again, ever!" Yet the only way central banks can causally intervene is to buy stocks directly in size, i.e. in the trillions of dollars. (Recall U.S. stocks are around $35 trillion, global stock markets about $85 trillion. Yes, buying futures contracts through proxies works in stable markets, but not so much in panic cascades of selling." Hugh Smith
Feel free to use my STDEV scripts to spot the insider selling strength published on Tradingview.
