Human analysis and investment considerations have been dangerously subjugated to a new power driving trading and markets. Call it: Rise of the machines.
Computers are always canvassing, calculating and spitting out orders based on algorithms. In extremely volatile markets traders follow the machines, not the other way around.
Mechanically, it’s not possible for humans to instantly analyze opportunities in markets based on mathematical models of valuation and execute orders in nanoseconds. Those responsibilities have been ceded to the machines.
Yesterday was a perfect example.
How else could the Dow rise almost 640 points in about an hour, all the way into the close, based on nothing.