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Robots run amok?

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Trading Experience: Intermediate
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Jigsaw Trading's Avatar
Posts: 2,929 since Nov 2010
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I fall on the side of this all being market conspiracy theory.

Bottom line is stocks reached a price where you can put your money in short term bonds and get a better return that the dividends in stocks.

As that looked set to unravel, all hell broke loose.

With the drop in liquidity, it doesn't take much size to throw the market 5 levels either direction.

Trying to read too much into that is futile. What I would recommend is that people who think this is robots running wild, go and watch the DAX, SPI or Hang Seng for a while.

My thoughts are that this is simply an illiquid market doing what illiquid markets do.

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