So far, looks like traders believe it was an overreaction. Probably run it all the way back. This is just a choppy market
volatility or not.
What caused the sudden selloff?
Started by
kinga200
, Apr 05 2017 03:08 PM
12 replies to this topic
#12
Data
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Posted 06 April 2017 - 10:07 AM
The market sold off on the prospects of liquidity being drained in the future. A plan for balance sheet reduction is expected by the end of the year before Yellen's term expires. The day to day market acts on the current level of liquidity. Notice the 2010 flash crash occurred after QE1 ended and the bonds started rolling off the balance sheet.
#13
CLK
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- Traders-Talk User
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Posted 06 April 2017 - 10:21 AM
Looking more bullish now, I think the first dip was to test the overnight low.
I didn't have the nerve to fade the board, so I left my short on for Friday week
and went long for tomorrow, trying to make a free position.
Edited by CLK, 06 April 2017 - 10:24 AM.
