There’s no need. Over 60% of the volume on the markets is the result of algo’s and HFT. The algo boxes kicked into gear this afternoon after the Fed announcement.
With rates crushed as low as they are, where is money going to go? You really have only three choices:
1. Buy US stocks.
2. Buy US commodities.
3. Go offshore.
IMO, those choices are ordered according to risk, and the bigger systemic risk now is competitive currency devaluations.
As someone said, when you see a machine oscillating like this it is time to step away because it is about to self-destruct.
The computer trades make it go mad. They kick in and run with the throttles to the firewall or the brakes on the same. The people traders feed on the action and the whole system goes into distorting destructive harmonic until it finally blows up and someone steps in with something to calm it or hit the reset button.
Wild.
Actually with HFT most of the market volume in the last year or more was only the 5 money center banks in NY.