A Snowball Induced Avalanche?

Posted at 4:26 AM (CST) by & filed under General Editorial.

Wolfgang,

You might look at it this way. One computer running a “head line reading” algo just went to full sell on a headline in the Baghdad Times that MDS was going to sell his US securities. That sell ticked off one momentum algo. The 9000 computer engineers just hired by Goldman at the same time gave their super algo quantum fast computer a test run.

Inadvertently, this set off the balance of the army of momentum computers letting go all the world algos on the sell side.

You see, all algos are created by geeks having never in their lives witnessed a real bear market in equities. Therefore there is no effective algo for a bear market, but to hide. This results in loss of volume, therefore the remaining momentum algos all go on the sell side.

As a result the end of the fake bull market arrives.

Since there is no algo for gold, but only manipulating activity, price stands still and looks at the mess going on. Gold does nothing for a short period of time. Then gold finds it’s lost retail and starts the reset algo off at the Federal reserve trading building in New York.

Have you ever considered that gold might be held down to facilitate the reset, in order to look less like a panic by a reprice to $2000 or $2500? I do and have always thought this, but it will not work.

Look out the window and see this today for yourself.

Regards,

Jim

Jim Sinclair
Executive Chairman
j.sinclair@tanzanianroyalty.com

Jim/Bill,

Can you say “A snowball induced avalanche?

“….you are witnessing a massive culling of the hedge fund industry as hundreds of funds are liquidated and thousands more get sizable redemptions.

As a result, you are seeing waves of forced sell orders and few buyers. “

 

 

 

 

 

 

CIGA Wolfgang Rech

Forced Fund Liquidations: Stocks Slammed By Barrage Of Massive Sell Programs
December 17, 2018

The US equity markets are being hit by an onslaught of significant sell programs today, suggesting forced fund liquidations.

 

 

 

 

 

The surge at around 1330ET was the 3rd biggest sell program of 2018 and with each new flush, stocks are making news lows…

 

 

 

 

 

 

 

 

 

 

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