Brad Sallows
Army.ca Legend
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They're a side effect of automated trading. If a trading model is sensitive to small perturbations, wide swings can result.So a rumor went around for a few minutes that the tariffs on China would be paused for 90 days, CNBC reported that the WH called it "fake news".
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Massive swings like this in a day and even in less than an hour are surely a sign of a very stable market, quiet possibly the most beautiful stablest market ever, right?
A human has to think about what to hold and how long to hold it and tends to make a few trades over relatively long intervals to produce a profit.
A computer-controlled trading model can make gains with micro-profits over large numbers of transactions.
Some of what we're observing has nothing to do with "uncertainty" - which exists only in the minds of people - and much to do with automated trading. The stability - or lack of it - is in the models.