Don't look now, but we're in the middle of an old fashioned Friday crash

[PaceAdvantage]

Will it recover? Will Monday be an even bigger crash?

[cj]

Will it recover? Will Monday be an even bigger crash?

It has been an ugly couple days. Glad I wasn't retiring today.

[AltonKelsey]

Zuckerburg peeking under everyones dress spooked the market.

[Saratoga_Mike]

Zuckerburg peeking under everyones dress spooked the market.

Widening LIBOR, LIBOR/OIS, Ted spread (all related of course) spooked the market, as well as concerns about a trade war with China. I'm sure the sell off in FB didn't help, but I doubt that caused the heavy, persistent selling, but I concede that it's unknowable.

[PaceAdvantage]

And just like that, the Friday "crash" has been reversed...funny game

[Jeff P]

I'm guessing most might agree with me that a fair percentage of the swings we've seen this year have been algorithm driven.

That said, one viable strategy if you are sitting at a poker table is to play in a manner that results in other players becoming (more than a little bit) emotionally rattled.

The thinking behind such a strategy being that emotionally rattled players are more likely than unemotional players to go on tilt. And players on tilt more likely to let emotion get in the way and make mistakes.

That said --

Anyone besides me think some of the swings we've seen this year could be driven by algorithms purposely designed to put individual investors on tilt?

Part of me suspects that the drops earlier this year and then again last week were likely orchestrated by algorithms designed to shake out week hands in hopes of picking up shares at a discount.

Think about it.

Other than the numbers at the closing bell --

What's different (outlook-wise/earnings-wise/where we are in the cycle-wise/politically/economically, etc.) today as I type this on Mon afternoon vs. last Fri?



-jp

.

[sour grapes]

absolutely agree this is orchestrated to shake the tree of small time investors,its happened for years but this bull market is different in that the long term investor is way ahead and the so called smart guys (hedge funds) have dreadfully under performed during this bull run trying to be short and hedged while the bull runs them over.

[Red Knave]

That would be a colossal conspiracy. I say it's unlikely. You can fix a race, but not every race.
For the most part, individuals don't hold enough shares by themselves to make a strategy like this worthwhile.
All those algorithms, even if they are based on machine learning, AI etc., were all programmed by humans.

[Tape Reader]

IMO, there is no difference in the way price bounces around on a chart today, or 100 years ago. It is a natural rhythm.

However, today we have cable news and the Internet convincing people that there is a bogie man behind every tree. Conspiracy stories!

[PaceAdvantage]

IMO, there is no difference in the way price bounces around on a chart today, or 100 years ago. It is a natural rhythm.

However, today we have cable news and the Internet convincing people that there is a bogie man behind every tree. Conspiracy stories!I agree...the market has been testing weak hands forever...today is no different.

[Valuist]

Huge up day yesterday but the biggest up days I can recall were from 2000-2003 and 2008-2009, in bear markets. Usually some of it is driven by short covering.

Ugly past hour for today's market.

[PaceAdvantage]

Yup...looks like the crash took Monday off but is back with a vengeance...

[PICSIX]

https://wishingwealthblog.com/2018/03/spy-enters-daily-bwr-down-trend-3rd-day-of-qqq-short-term-down-trend/

[Valuist]

Barron's recently quoted George Costanza to make a market analogy. Can you name the quote? It's one of his most famous lines.

[Valuist]

Barron's recently quoted George Costanza to make a market analogy. Can you name the quote? It's one of his most famous lines.

Anyone, anyone?

The answer is "Jerry, it's not a lie if YOU believe it".