The Market's Catch 22: Any Pick Up In Volume Leads To Immediate Elimination Of Bidside Order Books
As all financial service companies are making ritual sacrifices of lambs, goats, or virigns, whatever is cheaper to procure these days with rampant asset price explosions, to assorted gods that stock volumes finally pick up, the next chart demonstrates the very vivid Catch 22 that markets now find themselves in. To wit: every single pick up in volume, which means more than just the upward biased churn of the High Frequency Pirates, is immediately followed by a complete obliteration of the bidside order books, and a consecutive plunge in prevailing stock prices, especially in such ETFs (courtesy of record stock correlations) as the SPY and (synthetically) ES. Which is why the daily action since the beginning of September on less than miserable volumes is not an indication of any sort of buying interest, but a complete lack of trading interest. And any actual trading volume is always from a better seller. We hope that the brokers are positioned appropriately for that inevitable volume pick up, which however, will result in the market trading down quite promptly to late August levels, and, who knows how much lower.