NANEX has a hilarious tool that grades liquidity. According to their stats, we’re not at ‘Lord of the Flies’ tier liquidity.
By all accounts, markets feel broken now, quickly and violently moving between gains and losses. At one point we went from -700 on the futures to a +400 in the opening minutes of trade. I would call that fuckery of extreme proportions.
On top of that, Fidelity and other online brokerages have been down all morning, effectively stopping advisors and retail from accessing accounts to make adjustments. This is probably why markets ripped higher in the morning. There was no one there to sell because all of the fucking platforms were down.
Whew, we don't have to worry, because they are working to fix it… https://t.co/VehcM4xp4U
— northwestdr (@northwestdr) February 6, 2018
I am paralyzed here and not doing a thing. I have no idea where the next direction is for the day and would rather do nothing than sell into this panic or buy into this lack of liquidity. From my vantage point, I already lost the day — long 10% of my tactical account in XIV. I don’t feel like compounding that loss and error with emotional driven trades, so I’ll probably do nothing.
My Quant account is higher by 0.4%, all of which are mega caps. There is a certain calmness to having a quantitative strategy that correctly adjusts with the market. While I do not believe I can withstand the barrage of selling and actually make money in a down tape using a systematic approach, I do believe I can and will outperform — which is the point.
My chief tells are OSTK and Bitcoin and how that might have a ripple effect into risk acceptance.
UPDATE: I am raising cash.
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Nothing says risk like buy shitcoins
Regards
Chuck Bennett
I’d like to hear from all the Ripple shills that bought into that scam less than 2wks ago.
I’m a Ripple XRP fan. First bought in the .70 range. Again in the 1.20 range. Added yesterday at .65
Also a Monero fan for privacy
I see. Trying to catch falling knives seldom ends well. And value averaging as an investing strategy in a market like this is a recipe for wipeout. Cutting your loses would be something I would look into. But that’s just me… Good luck. (and I mean it w/o any undertones or subtext. or sarcasm)
Sensitive Sarc …This is indeed a strange day.
I;’ve been there. And learnt from it. I wish no harm to anyone who got sucked in and is getting scammed. It’s so clear. But like my teenage boys, they think they are smarted than oldschoolers and are unable to see the big picture due to their inexperience. Tough school.
Ripple is a scam and will go to ZERO.
Do. Not. Buy.
You have a crystal ball or did you find the Magic 8 ball you thought you lost?
I bet squats are bad for your knees too?
Doesn’t take a crystal ball to recognize a scam.
You always pop up when someone mentions XRP… every time. Very strange.
Not really.. it was my 1st crypto purchase so it always catches my eye when I see the symbol or the name.
Just a coincidence. Got it.
I’m not sure what you’re getting at. I thought my answer was clear enough as to why I pop up when it’s mentioned. No?
Cut to the chase anonymous internet person.
What do you perceive it to be?
What is up with these things? BTC traded steadily up (6000-7500) through the overnight and pre-market minefield (1:30-9:30), then turned right over been going down ever since (now back at 7000)
wash trades. insiders trying to get suckers in to BTFD and HODL while they themselves bail out. classic.
HYG also behaving well here … need to eat a sammich
Tulips had nothing on bitcoin and shorting risk at the height of fancialisation.
maybe look for unusual put option volume on fin stocks may give a tell to who may be a bag holder here
I guess this is the new norm. May 2010, August 2015, Feb 2018…
Brief moment when the market absolutely breaks, but the lows are still a ways away.
Look to gold/silver as a sentiment indicator of direction.
Both down. Money going back into equities.
AU/AG lagged the 08 crash too.
floor is above to give again.
watch out below!
Now one is to ask itself, would Trump QE or not QE?
QE would be an admission of failure. Methink he’ll let the market burn before lending a liquidity hands. just my opinion… but this selloff could get real nasty and no one to come and save the day. kinda like dot.com before 911.
Your joking, right? Trump will do whatever enriches Trump. Period. You can bet an debt-funded Trillion bill will get passed if the market falters.
Don’t forget, he put an **investment banker** at the head of the FED – one that majored in **Political Science**. No joke (or a very cruel one).
You are right that Trump wouldn’t admit failure – but that’s much different that blaming others for his own policy errors.
Trump in the morning, Trump in the afternoon, Trump at night, Trump in your dreams.
You allow him to live in your head rent free.
“The Art of the Deal”
Can’t be as bullish now that trillions have been destroyed, but I still think higher by this time next year. Money to be made, but don’t overlook the political climate and the idiots in office. Now to November could get rough, and hamfisted policy moves like suggesting 4 rate hikes for 2018 could take a toll.
“Can’t be as bullish now that trillions have been destroyed”
To be fair, that’s the mentality I had on March 9, 2009 when GE was in a death spiral. Had I just bought solid companies with every penny I had (I wasn’t in stocks at the time) I wouldn’t be commenting on a blog!
Worst thing I did was watch CNBC and their gloom and doom chatter and people around me adding to the world is ending bullshit. I didn’t see thru the emotional haze.
Forget politics and emotions.. use TA and Fundamentals and you’ll probably find some hidden gems during this turmoil.
To be fair though, the entire system almost collapsed in 08/09 so they weren’t being emotional.