Ah yes. This is what the theoretical modelers cannot understand at all. It is that markets are made by engaged minds and that those same minds can change as one on a dime. In one direction or the other, liquidity disappears. It may not be driven by decisions made on the other side at all when that happens. After all prices can simply hang until we have a forced trade.
The last week seems to be a withdrawal of market maker support, plausibly inspired a a political demonstration in support of the Deep State.
Right now the money interests have not understood the dimensions of the loss of power been inflicted on former power brokers. That will become evident over the next three months and markets will powerfully re surge from whatever levels now been inflicted..
Dead. Market. Walking...
by Tyler Durde
Tue, 02/06/2018 - 08:26
Liquidity in the "most liquid equity futures contract in the world" has evaporated.
As Nanex's Eric Scott Hunsader exclaims, "Liquidity has flatlined... just incredible..."
As Jason Diomedes (@TradingWits) writes ominously, this liquidity flush is the "equivalent of 1987 crash when equity market makers stopped answering their phones."
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