Liquidity is not always the answer in normal markets, probably
never the answer. However,
these markets are very far from normal, and are liquidity
driven. 2/27, 3 pm is the kind of BK that I expect once
liquidity evaporates, only a bigger down in price -g-
Say, limit down in 1 minute, DOW halted, another limit down
in 1 minute after DOW re-opens, halted for the day -g-
Computer-driven markets can be very fast -g-
The main reason is - this is not a free market. By manipulating
stock indices higher through futures, the Fed has destroyed
all the bears, and thus all natural supports this market
could have. The only support is from the Fed and minions.
Once the market overpowers that (it usually does, or so
history tells us), there will be no upticks. Hey, I would not
dare to short this pig. -g-
The ongoing manipulation is coming from derivatives - index
futures. Thus, it will be the derivative market that overpowers
the Fed. The Fed seems to think that leverage is the answer
to managing markets, but as the leveraged derivative markets
grow exponentially in size (they have been), the point at
which they can no longer be managed will come. |
