When you live by the algo, you have to be prepared to die by the algo. With only 10% of daily equity volume being driven by fundamental, discretionary, carbon-based investors, 90% of the volume is subject to the whims of the silicon-based traders.
This morning, we have the S&P 500 trying very hard to hold 2500, but VIX and the JPY are both creeping higher due to geopolitical risks (a hydrogen bomb, now?) There’s only one tool left in the algo shed: CL. And, unless it settles back down tout de suite we’ll see September CPI pop above 2% — not exactly on the central planners’ play list.
So, what’s more important — holding 2500 or averting inflationary headlines?
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