What a week.
Each day it seems we are setting some kind of record, whether it’s in the percentage of stocks closing X-amount at new lows, volume flows, sentiment, etc. This is a historic time and for those involved, one that will be hard to forget. With massive swings in stocks, bonds, and commodities, emotional responses begin to take hold and chaos can ensue. Earlier this week Aleksandar Kocic, managing director at Deutsche Bank (DE:), shared a note on LinkedIn (NYSE:) about chaotic movements in the market and through the de-risking process that this type of heavy downside selling pressure promotes, analysis of the resulting price action can be extremely difficult.
“If I throw a ball to someone at the other end of the room, they’ll be able to catch it by anticipating its approximate path. A small error in their judgment will have a small impact on the point at which the ball lands. If the ball were replaced with a balloon, blown up and released, it would sputter and dart…
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