Did you notice the sharp selloff that started at exactly 2 pm cst across all sectors, culminating with a huge dumps in each of these asset categories 10 minutes before close? This selloff pattern also occurred in crypto. This concerns me as to me it points to a massive shift to cash. Interested to hear everyone else's thoughts.
Did anyone else notice the sharp selloff at the end of the day Friday across multiple sectors and even crypto?
byu/Dying_Daily inwallstreetbets
Posted by Dying_Daily
9 Comments
Following
Some fund managers like to cash out before weekend….
First time?
Yea. Went from up $1000 for the day to up $200 in the last hour or so. It used to be a common sight for people to take profits before closing on Friday in case major global news was announced over the weekend that would affect the market.
Would you be less concerned if the market was red for the day?
If you look at the 5 min candles it can look more dramatic than it is.
Right, I prefer watching the S&P500 5 min chart to anything else. Years before I witnessed 1000 points and more dips and spikes at the DJIA.
The moves are going to get stronger.
This time it’s different, but somehow it’s always the same. People speaking about economical recovery, while we are in a Goldy Locks environment, full employment, high income, rel. low rates on their way to get lowered. Inflation bites but as long as assets climb and wages also: so what?
A thing could prove tricky: The US eco relies on getting the deficites financed by the world. China won’t play that role like it did for two decades. Others demand higher risk compensation. Basic inflation will rather target 3 than 2 percent. If the economy will slow down, that will be appreciated by the markets (spikes up). If it dawns on them that money flood gates can’t be opened as wide as before and rates can’t be lowered that aggressively, than we will see huge dips. All in all it won’t be a light recession, which threatens, more if stagflation turns to depression (I don’t see this looming shortly). But China will stay in deflation for decades, Japan did that for 35 years after the real estate bubble burst end 80th (was it 87?). Growth rates, earnings and stock market gains won’t keep up their pace.
I think this is more or less related to sector rotations. Big money gradually selling out of over priced tech and buying into value in preparation for cuts and a slower economy.
you’re never going to make it in the market if you get that scared so easily over nothing