Yesterday's action
posted on
Jul 31, 2012 08:33AM
This latest move might seem like a capitulation to some, and thus rounding off a bearish decline, but I would see it as a bear trap. Obviously someone with a computer terminal and market depth could not resist selling shares they do not first own, hoping to parry that money into treasury futures if Central Bankers pledge to buy more bonds. The other side of the algorithmic trade is the settlement of a sizeable chunk of naked shorted shares.