Loading ...This is why I have been saying “watch the dollar”—it’s reversal the past few days is significant-today it gave up an .800 gain]
“A lot of the liquidation was foreigners in need of cash and sold because of the dollar. This is why you began to see the Euro rally while there has been a massive shortage of actual dollars on the street”
Who Was the Seller
QUESTION: Hi Marty, I’ve been reading your blog for some months and have found it fascinating. I subscribed recently. Today I heard an American business analyst asking a Brit (on CNBC, just before 3pm PDT on 3/26/20). The American asked the Brit who had been doing all the selling. He had looked and it wasn?t institutional investors, nor did it seem to be the smaller mom and pop investors, so who did the selling. The answer was that the Brit was wondering, but he didn’t have an answer either. It was obvious that they both had access to data that would have given them a heads up, but both were wondering about it, and neither could figure it out. So help us out, Marty. WHO DID ALL THE SELLING THAT PUT US INTO A BEAR MARKET?
Thank you much
EAA
ANSWER: Obviously, neither really has any clients to speak of. There has been major selling by institutions that were caught with their pants down as they say. In a crash like this, the market falls BECAUSE there is no bid. This is what we call a liquidity crisis. There are institutional that had to act because they would lose a lot which is then reported at the end of each quarter. You will see the funds which have lost big time. We have a handful of major funds that were positioned correctly. So you will see some made money when others lost big time.
A lot of the liquidation was foreigners in need of cash and sold because of the dollar. This is why you began to see the Euro rally while there has been a massive shortage of actual dollars on the street.