| | This Week's Trading Was Proof Positive: Machines Call the Shots | Dear TheoTrader, | The past five days of sessions have really thrown the machines' control of the markets into super-sharp contrast. | We saw an extreme selloff, a spirited defense from the machines, and then a rally. | If you tried to short the selloff, chances are you probably got killed. With very few exceptions, this was and remains "the Unshortable Market." | Keep this thought with you as you head into the weekend: The fundamentals don't matter. A company's bottom and top lines, where its CEO went to school, its pipelines - they don't matter.
Data doesn't matter, either. Housing starts, inflation, defaults, manufacturing - doesn't mean a thing when a literal army of trading robots will pour everything they have into defending 5,400 on the S&P 500. | If you can't beat 'em (and believe me, you can't), join 'em.
Have a great weekend - take a well-deserved break from the markets. We'll talk again next week. | Professor Jeffrey Bierman |
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