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Stocks Are Suddenly Plunging As Momentum Crashes

2019 09 09 9 38 48

Stocks Are Suddenly Plunging As Momentum Crashes

Having squeezed higher overnight and accelerated after the US open, it appears the catalyst for the sudden dump in US equity markets is the European market close

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Nasdaq futures illustrate the technical nature of the move best as the drop erases the sudden spike at the US open on Friday (after payrolls missed)…

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As it appears momentum-tilted quants are imploding…

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Source: Bloomberg

This is the biggest collapse in momo since the extremes in 2009…

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Source: Bloomberg

Chatter is that this is forced derisking from momo-tilted funds that have suffered a VaR shock as momentum has outperformed so dramatically that they need to be rescaled to risk exposure limits.


Tyler Durden

Mon, 09/09/2019 – 12:40
Source: zerohedge.com

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