by Chris Black
The market moves make no sense because they are all driven by computer trading algorithms trying to out position each other.
It can’t be understood by humans, because humans can’t perceive the triggers that cause the algorithms to move in one direction or the other.
It is Skynet vs HAL.
Look at any one minute chart, there is no reason for any of those moves.
There can’t be, let alone the millisecond moves the computer trading system uses.
Somewhere along the line a certain level of volume or crossing an imaginary percentage triggers a buy signal.
Others try to front run perceived moves, creating the signal that would never appear otherwise.
Oil went to $95 because it went to $95.
There wasn’t really any demand or real world cause for that move.
The global oil industry doesn’t grow 20% in a week, or decline that much in a few days.
The real world existence of supply and demand is as foreign to the algorithmic stock market, as the ones and zeroes are to us.
Stocks Erase Losses As Bonds Flatline, Oil Slumps Ahead Of Friday's Jobs Report https://t.co/t68gXI6kIh
— zerohedge (@zerohedge) October 5, 2023