Source: Citigroup via Bloomberg
How Have Market Dynamics Changed?
August 19, 2015 6:30am by Barry Ritholtz
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What move? We’re at nearly the same point in the market as we were at the beginning of the year.
Apparently, markets have shifted from trading on price to pure momentum trading … possibly algos gone awry?
D’ya suppose that the bots doing the trading know about that old adage, “the trend is your friend … until it ends”?
So a tarrif on oil imports would raise the cost of Saudi production and put money into infrastructure. Otherwise…
The Saudis will stop pumping when the financing for marginal US oil production has benen disrupted an oil prices will rise.
Then everything will change. We will see inflation and no one under contract fifty will know how to react. Millenials will be forgoing tattoos to afford down payments. Stones will be commissioned to rush offers to sellers (after touring the property)
Sorry drones, will rush offers out. Or Uber.
It seems quite obvious that the US macro data has been disconnected from the markets for some months now and with so much cheap money searching for returns, “buying on the inflows” is exactly what’s happening. Also factor in massive stock buybacks propping up the markets. It will end, possibly badly, the only question is when.
The Dow lost another 530 today, now sitting at 16,450. What do you think, Barry, is this the opportunity to buy the dip? Or would we be catching the proverbial falling knife? Myself, I can’t tell if this is 2008 all over again? Opinion?
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ADMIN: 2008? Where’s Lehman?