May

4

 Yesterday's release of GBP PMI Manufacturing number saw the market drop 60 points 2 minutes before the announcement in a 74 point 1 minute range, and in line with the weaker than expected announcement. The market than went back to its happy 5-10 point 1 minute range for the rest of the evening. More flexions at work?

Paolo Pezzutti writes:

All algos working around the globe now are working to buy any type of dip following "bad" news. I don't know if there's an agreement among strong forces to do so or if, more simply, this kind of behavior has generated "spontaneously" because of other considerations (quant, fundamental or whatever). It would be interesting to learn what would take to change their trading approach. Probably a sudden and "unexpected" big loss. I don't think that "smooth"adjustments of market sentiment could influence this raging river of money flowing into the markets. However, it is well known that some believe that the least beating of wings of a butterfly is able to cause a hurricane on the other side of the world. Paolo
 


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