Pascal
04-23-2013, 01:49 PM
It is interesting to note that this new super-flash crash only lasted two minutes and was reversed.
The 20DMF locked-in a lower MF on the way back. This is due to the flush that triggered many stops. Those investors did not come back or they did at a slower pace then on the way down.
It is also interesting to see that gold jumped and then reversed lower than before the jump.
All in all, we once again witnessed the vulnerability of this market: one hacked tweet and you get the world upside down.
Anyway, valuations are much too high by all historical measures, except the only on that counts: liquidity.
Pascal
18105
The 20DMF locked-in a lower MF on the way back. This is due to the flush that triggered many stops. Those investors did not come back or they did at a slower pace then on the way down.
It is also interesting to see that gold jumped and then reversed lower than before the jump.
All in all, we once again witnessed the vulnerability of this market: one hacked tweet and you get the world upside down.
Anyway, valuations are much too high by all historical measures, except the only on that counts: liquidity.
Pascal
18105