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Last 30 Minutes Of The Day


BG2008

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I haven't confirmed this but it seems like if the indices are negative or pos at 3pm they will skyrocket in the same direction by 4

Yeah, at the end of the day it's indexes buying or selling. So days movements will be amplified. It's definitely dumb trading. But that's not their job. Their job is to minimize tracking error and that's how it's done. Profit at will.

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I haven't confirmed this but it seems like if the indices are negative or pos at 3pm they will skyrocket in the same direction by 4

 

I kind of agree, but I think the time is 15:30pm when the mindless algos  set in.

 

I bet Renaissance Tech makes a fortune in this market.

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Trump needs to do a new press conference. He said he could do them 5x a day to make the market do what it did on Friday. Why isn't he doing it? Does he not love us? He said he did!  :'(

 

He did hold one today.  When he got to the part about staying this way until August, market took a dive.

 

This late day volatility happens when Trump opens his mouth.

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Here's a theory that variance swaps have increased end of day volatility because dealers are hedging:

 

ZeroHedge doesn't have the best credibility, so I'm curious what others think of that theory.

 

They have a pretty good track record on explaining the underlying plumbing of the financial system that we all ignore.

 

Just take the end of world predictions that come with every article with a massive grain of salt.

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In this type of market, it’s important to watch how equity prices trade all the way to market close to get a sense of how many leveraged investors need to raise collateral to satisfy their margins with their prime brokers.

 

Often during the depths of the 2008-09 global financial crisis, the equity market would appear to stabilize 20 to 30 minutes before close, only to see the indexes drop precipitously over the last 15 minutes of trading. This happened because hedge fund managers waited until the end of the day to get the most accurate calculation of just how much cash they needed to raise before the markets closed, and then liquidated what they could to raise enough cash to meet collateral calls.

 

This type of end-of-day market action has already occurred several times during the COVID-19 crisis. Once the leveraged funds are shaken out of their positions and forced selling begins to decrease, we expect a substantial amount of market volatility to subside.

 

https://www.morningstar.com/articles/973164/even-safe-haven-assets-are-feeling-the-pressure

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In this type of market, it’s important to watch how equity prices trade all the way to market close to get a sense of how many leveraged investors need to raise collateral to satisfy their margins with their prime brokers.

 

Often during the depths of the 2008-09 global financial crisis, the equity market would appear to stabilize 20 to 30 minutes before close, only to see the indexes drop precipitously over the last 15 minutes of trading. This happened because hedge fund managers waited until the end of the day to get the most accurate calculation of just how much cash they needed to raise before the markets closed, and then liquidated what they could to raise enough cash to meet collateral calls.

 

This type of end-of-day market action has already occurred several times during the COVID-19 crisis. Once the leveraged funds are shaken out of their positions and forced selling begins to decrease, we expect a substantial amount of market volatility to subside.

 

https://www.morningstar.com/articles/973164/even-safe-haven-assets-are-feeling-the-pressure

 

Interesting.  Thanks for posting!

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