ES Volume 30% Below Average, Market Surges, As ES-EURJPY Spreads Collapses
Skynet has realized that once again nobody is trading, and with ES volume at 1.18mm 30% lower than the average through this point in the day, the market is surging. No surprise there. The computers know too well that a crash from a higher position is much better than from a lower one, all else being equal. What is surprising is that the EURJPY to ES spread, which we pointed out yesterday blew out to unprecedented levels, is on its way to collapsing. If a trade as simple as this is what drives the market, then it is certain that not only computers, but really dumb computers are in charge. Although in retrospect, judging by Irene "Cash Cow" Aldridge's spirited defense of HFT earlier on CNBC (sorry, we are not going to give industry lobbyist more free air time), not even this fact should surprise us.