Octane its not about market sentimentSome people might understand but the majority of trading today is just algos running scripts. Banks, hedge funds, some pros, rarely retail run these mostly unattended now.
So a bit of history since no one answered my question (show the lack of knowledge of the so called traders here)
About 10+ years ago there was a collapse where the paper market for mortgages could not be supported by the physical market. Fannie Mae and Freddie Mac were at the centre of a collapse. Banks, government drove bailouts and of course the tax payer paid the price. This was an instance where the algos bid up the value based on programming logic
Fast forward to today. Algos and programs are driving a blind trade between financial and physical. Thia time in the opposite direction. Banks, funds, hedges blindly shorting the financial paper market based on "code"....i could talk for years about the pros and cons of that "code" anyhow just like that period here you have the reverse
There will be a massive bailout and government will come to the rescue again of banks, hedges,/funds....tax payers will pay the price again
The difference is we will see that fannie and freddie in reverse..instead of algos bidding up value....now algos are shorting down value....all system driven (so no "person" at the top pushing buttons)
In 2023 we will see a reverse explosion.
My logic cant be denied....any logical TA person knows algos are driven by code. Good TA's also know that can lead to an asset/paper disconnect. They also know (the smart ones) that the end results can be explosive.
Just like mortgage paper plummented in value the reverse can be true
Oil paper can skyrocket
Sadly in the end tax payers will pay....and long-term investors in oil and gas will make bank
Call it the reverse big short
Happy times coming
Warren Buffet knows this feel free to ask.