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Re: Purpose of the PP
Posted: Mon Mar 02, 2020 7:27 am
by jhogue
Can a machine panic?
It seems to me that the origins of the equity market events of the last ten days are driven by human emotion, however the trades are placed.
Re: Purpose of the PP
Posted: Mon Mar 02, 2020 7:39 am
by mathjak107
much of the trading is machine selling because most pro's and institutions use margin .
steep selling leads to more selling as traders unwind leverage ... when we go back up buying leads to more leverage and buying ...
automated selling all seem to focus on the same major criteria in the programs
Re: Purpose of the PP
Posted: Mon Mar 02, 2020 3:38 pm
by mathjak107
mathjak107 wrote: ↑Mon Mar 02, 2020 7:39 am
much of the trading is machine selling because most pro's and institutions use margin .
steep selling leads to more selling as traders unwind leverage ... when we go back up buying leads to more leverage and buying ...
automated selling all seem to focus on the same major criteria in the programs
See , nothing changed except the machines bought , which caused more machines to buy , which caused the shorts to run for cover and the result is an almost 1300 point gain on no news