I am sitting here watching the markets break down as the Bulls run out of steam. Smart ones are collecting their profits as they scrape the bottom while putting on lots of protection.
But who really is in control?
Mathematical algorithms are firing off at a blistering pace, they hunt for alpha out in the open and even in the dark (see Dark Pools).. Technical trends are crossed driving bullish execution while the bears use counter strategy similar to a game of chess..
Markets swing back and forth sometimes 3..4% a day.
Every quarter companies need to show over the top growth, shrinking operational cost is fizzling as a good excuse as we look for concrete signs of a recovery.
The machines get bigger and wider and more connected they spread out sometimes reminiscent of a “shanty town”. There actually is a software design paradigm called The Big Ball of Mud.. The lesson? “It’s ugly, but it works for what ever reason”
Well lets see if the bears lose their grip and our systems can handle the options traffic as investors try and protect their value play with a downside PUT.