I detest firms frontrunning massive liquidations. Obviously,
someone BIG was in trouble and being liquidated. This isn't just a
run of the mill sell program. Anyway, maybe they'll let it breathe
for a bit
profmel - also these days such a large amount of firms use
pretty generic algos, some which cause big program selling if a
certain level is hit etc. I remember looking at one firm who
ran billions and was discussing some systems with them - their
system was (I don't remember the exact parameters anymore but
here's the gist) it was something sell 50% of all their portfolios
after a 6% close below the 200 day MA, add 50% back on a 3%
move back above the 200 day MA, and add the other 50% back after a
6% move back above the 200 day MA. This is just an example,
but many firms these days have simple formulas like that and big
moves in the market can trigger program selling and buying
across the board. I'll add that this volatility is something
we haven't seen really since the the 1920's and 1930's and 2008,
and therefore is breaking or causing a lot of whipsaw with those
simple algos.
TY great explanation. Steve I was looking at 1/3 retracement of
yesterdays move but literally not even a moments bouce...just max
tick-1500+ selling all the way down. In retrospect yesterday was
nothing more than short squeeze with no real buyers; otherwise
would've expected defending some logical pullback. You guys are
killing it on these moves...I mean even that one system didn't sell
yesterday looking for potentially more upside. Bottom line - TY
both -- still learning here.
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61.8 fib would trigger the
SPY 30
Posted by mugsy on 10th of Apr 2025 at 11:50 am
61.8 fib would trigger the 7% halt i believe and still just be a realistic pullback. Wouldn't that be something?
we have not seen ranges
Posted by matt on 10th of Apr 2025 at 11:51 am
we have not seen ranges like this - nothing would surprise me
When does Europe close? Seems
Posted by profmel on 10th of Apr 2025 at 11:57 am
When does Europe close? Seems to be huge pressure going into top of this hour
I detest firms frontrunning massive
Posted by profmel on 10th of Apr 2025 at 12:33 pm
I detest firms frontrunning massive liquidations. Obviously, someone BIG was in trouble and being liquidated. This isn't just a run of the mill sell program. Anyway, maybe they'll let it breathe for a bit
profmel - also these days
Posted by matt on 10th of Apr 2025 at 12:39 pm
profmel - also these days such a large amount of firms use pretty generic algos, some which cause big program selling if a certain level is hit etc. I remember looking at one firm who ran billions and was discussing some systems with them - their system was (I don't remember the exact parameters anymore but here's the gist) it was something sell 50% of all their portfolios after a 6% close below the 200 day MA, add 50% back on a 3% move back above the 200 day MA, and add the other 50% back after a 6% move back above the 200 day MA. This is just an example, but many firms these days have simple formulas like that and big moves in the market can trigger program selling and buying across the board. I'll add that this volatility is something we haven't seen really since the the 1920's and 1930's and 2008, and therefore is breaking or causing a lot of whipsaw with those simple algos.
TY great explanation. Steve I
Posted by profmel on 10th of Apr 2025 at 01:01 pm
TY great explanation. Steve I was looking at 1/3 retracement of yesterdays move but literally not even a moments bouce...just max tick-1500+ selling all the way down. In retrospect yesterday was nothing more than short squeeze with no real buyers; otherwise would've expected defending some logical pullback. You guys are killing it on these moves...I mean even that one system didn't sell yesterday looking for potentially more upside. Bottom line - TY both -- still learning here.