Tuesday 9 August 2011
Here we go, here we go, here we go
Anyway, another day in the UK and another day of blind panic and disorder - just the FTSE so far mind:
That is a pretty nice drop from yesterday's dismal close. There is panic in the markets and more importantly there are robots and margin calls. I think the combination of these two is not working out so well. The robots sell and buy to increase the size of the waves, which in turn force more margin calls on leverage investors - which has driven volatility up to 2008 highs.
Clearly, the macro picture is not helping and with civil disorder across the UK even without the impending collapse of the Euro and Dollar the markets would be down three figures today in any event.
Cant' see anything that is going to end this anytime soon; good sign that as a contrarian indicator. Mind you I thought yesterday would be the ow-off capitulation so my judgement is not to be trusted at the moment.