It keeps coming down to the last thirty minutes of trading where something keeps going horribly wrong. Once again, the narrative this has anything to do with individual investors is folly. Sure, many are getting caught as collateral damage, but so few are in the market and account for a tiny amount of trade activity.
Take a look at buyers since dawn of the great recession (courtesy of Merrill via zero hedge):
But soon many individuals might be placed in position to bail as unanswered questions persist.
China causing all of this...really?
Margin calls sparked selling on Tuesday even after Dow up 350 points...really?
Don't get me wrong there is a lot of margin debt, but not sure how it jibes with massive outflows of individual investors in funds and ETFs.
My parameters were tested Tuesday on the up and down sides, which is remarkable. The reversal was one for the record books.
Once again, I look at the machines triggered by anxious fund managers and market manipulators, most already on the wrong side of the market with abysmal track records. Lots of them catching up big time crushing the average investor. If you can't beat them on long side...
The economic backdrop hasn't changed. It's not great, but it’s plodding along, waiting for the next administration at home and any semblance of capitalism elsewhere. Yes, headlines will talk about China coming to the rescue. After years of disparaging remarks, it appears we love those phony data releases after all.
More ghost cities, please.
Yes, I think the market is oversold but that means nothing near term.
Longer term, it means a lot for those that can keep their wits while algorithmic robots do battle on the field of the stock exchange.
Oversold
US futures are up despite China dragging Europe lower and persistent unanswered questions and angst.
A huge deal in the oil patch underscores how oversold most stocks have become. Schlumberger (SLB) acquires Cameron International (CAM) in a $14.8 billion deal for a 56% premium from Tuesday,It keeps coming down to the last thirty minutes of trading where something keeps going horribly wrong. but only 36% last 20 days. We are using same parameters as Tuesday morning.
The market is oversold (even bears would acknowledge as much on a short term basis), but that's not enough for more than a near term bounce. There was strong economic data overlooked Tuesday, but those are the reports that build the case for a sustained bounce.