Where is money going?

Discussion in 'Trading' started by Amatrue, Feb 26, 2021.

  1. Amatrue

    Amatrue

    All sectors and indicies are down from yesterday, yet gold is down and rates are up? Where is money flowing towards? With all the talk about inflation you would think people would be less inclined to hold money.

    I believe yesterday's drop was caused either by hedging or triggered by gamestop's movement like last month.
     
    unconventional wisdom likes this.
  2. d08

    d08

    GME doesn't sway the market that much. All it did was force some HFs to panic buy into high short interest names fearing a repeat of GME.
     
    ET180 likes this.
  3. Amatrue

    Amatrue

    From last month's rally wasn't HFs selling long positions in order to cover their GME margin? Couldn't the same be occurring this time? Anyways I believe this GME rally would again be short-lived and that yesterday's move could instead be investors pricing in post corona rates at a healthier condition, but with the Fed stating rates would be held steady I believe we would very quickly see indicies back at ATHs. Hence BTFD.
     
  4. d08

    d08

    Since we were up last month, the selling would have sunk the market.
    What I saw was massive short covering in some names. Spikes I've never seen in early february. They didn't want to risk being the next Melvin.
     
    TrailerParkTed and guru like this.
  5. guru

    guru

    That’s like asking a day trader where his money is going every 5 minutes.
    For hedge funds it just takes more time to trade, and they do have to sell and take profits every so often. These pullbacks actually happen after many earnings periods. I used to wait for such pullbacks after earnings (4 times per year) and then short UVXY on spikes.
    The money could also be going to crypto, recently silver, but mainly probably hedge fund outflows, including moving money from underperforming funds to others (which may underperform later). Some profit taking as well, especially after earnings, or sometimes right before FANGs report. Some money may already be moving to different sectors, just not as noticeable.
    GME can’t have anything to do with hundreds of $billions moved around funds. While the market pullback started more than a week ago.

    Today’s example of a hedge fund closure, though maybe not due to underperformance:
    https://finance.yahoo.com/news/cqs-shutters-525-million-hedge-172705466.html


    And btw, what’s wrong with cash?
     
    Last edited: Feb 26, 2021
  6. Cash, but of course over 50% of people here on this website don't even know how to spell cash, it's crypto for them only
     
  7. had the same thought. all indicies down, crypto down, commodities/gold down, rates up, dollar down(!?) what the f? next few days will be interesting
     
  8. Overnight

    Overnight

    Lol, exactly.

    Thankfully next couple of days will be closed. TGIF...Though this Friday is freaky Friday where end of trading month is on a Friday, plus the nonsense on the Hill with the stimulus plan. A decision of which will be made in the House after the markers close (of course), and then we get the Senate nonsense next week.
     
  9. treeman

    treeman

    Into value and Europe (which is bullish for the us).

    relative charts show you where money is flowing. To make money in the market, you’re either front running the money flow, or you’re insolvent (and doing that in 1 or 5 min increments isn’t setting yourself up for success, imo)
     
    Last edited: Feb 26, 2021
    unconventional wisdom likes this.
  10. Europe currencies very much getting money from investors here
     
    Last edited: Feb 26, 2021
    #10     Feb 26, 2021