Is This Why The Market Just Turned Green?
SSDD: Big dump at the open, then the usual low volume levitation higher as the BTFD algos engage. But why? While the economic news today was bad it wasn't so horrible to merit a new all time high in the "market", while geopolitical developments continue to deteriorate, however at the usual "better than expected" pace. So what might have been the reason for today's latest surge higher which just brought the "market" back into the green? This note from Dennis Gartman may well have been the catalyst.
We suspect that later today we’ll be reducing our long positions modestly and/or increasing our derivatives positions also, to take us very, very close to market neutral, and indeed we may find ourselves erring even ever-so-slightly negatively of shares if the conditions warrant. What we do know for certain is that neutrality shall beat bullishness for a day or two or three… or perhaps even more.
"Erring" and "know for certain" being the keywords of course. As for Gartman's clockwork, even the USDJPY manipulators are awestruck.
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Joking aside, the reason for the move is the near vertical levitation in the AUDJPY cross since the start of today's POMO.
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