Thanks, Kevin. The article seems to suggest a lot of the
rebalancing may have already occurred, and the ramp up was not that
much today, which leaves a concern over what may happen tomorrow.
Over my head to judge. I will leave than to the heavyweights on the
board!
The official term is called 'frontrunning' as the wirehouses and
hedge funds trade against the "known". Algos have been set on sell
just under 2650 for a week now and sell hard everytime we get
close. Matt/Steve's work has been spot-on
I've been thinking about this all day and wondering if it was
just a coincidence that Goldman dropped it's GDP/employment
forecasts today...somehow I kind of doubt it...am I being too
cynical?
Not too cynical at all. But remember GS hasn't been right or
made a good call since Abbie Cohen days. IF the rebalancing hype is
true this should be a helluva buy program into the cloase :)
Not looking that way at the moment...
Posted by kevindeng0727 on 31st of Mar 2020 at 03:23 pm
The rebalancing should have been taking place throughout the
past week or so. So we are getting close to the end and some people
may have already started trading based on the assumption that this
buying power will disappear soon.
Anyways, this may or maynot be among the major reasons for this
recent rally.
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Thanks, Kevin. The article seems
https://www.cnbc.com/2020/03/31/stocks-could-get-a-buying-boost-on-tuesday-from-portfolio-rebalancing.htmlThis article estimates that 20B-200B money will flow into stock ...
Posted by mdgfain on 31st of Mar 2020 at 02:18 pm
Thanks, Kevin. The article seems to suggest a lot of the rebalancing may have already occurred, and the ramp up was not that much today, which leaves a concern over what may happen tomorrow. Over my head to judge. I will leave than to the heavyweights on the board!
The official term is called
Posted by profmel on 31st of Mar 2020 at 02:33 pm
The official term is called 'frontrunning' as the wirehouses and hedge funds trade against the "known". Algos have been set on sell just under 2650 for a week now and sell hard everytime we get close. Matt/Steve's work has been spot-on
I've been thinking about this
Posted by puma on 31st of Mar 2020 at 02:38 pm
I've been thinking about this all day and wondering if it was just a coincidence that Goldman dropped it's GDP/employment forecasts today...somehow I kind of doubt it...am I being too cynical?
Not too cynical at all.
Posted by profmel on 31st of Mar 2020 at 03:19 pm
Not too cynical at all. But remember GS hasn't been right or made a good call since Abbie Cohen days. IF the rebalancing hype is true this should be a helluva buy program into the cloase :) Not looking that way at the moment...
The rebalancing should have been
Posted by kevindeng0727 on 31st of Mar 2020 at 03:23 pm
The rebalancing should have been taking place throughout the past week or so. So we are getting close to the end and some people may have already started trading based on the assumption that this buying power will disappear soon.
Anyways, this may or maynot be among the major reasons for this recent rally.