They are making it easy for us to know who they really are at least.

While days like yesterday are scary, remember that for now nothing has changed except for expectations.

Hope that helps!

This is not because anything changed immediately with any particular company.

Any time you see immediate and widespread selloffs, it is the algorithms.

Some retail traders follow suit, and the problem compounds even more.

🧵⬇️

What wasn’t built into the models was the Fed stating that instead of three rate cuts forecasted next year, they are thinking there may only be two.

Since the models were planning on more than reality, the programs immediately sold down the positions.

🧵⬇️

These computer program algorithms are preset with certain expectations of future events, so when something changes, there is an immediate, automatic reaction and the computers will buy or sell accordingly. Yesterday the Fed lowered interest rates by 0.25%, which is what was expected.

🧵⬇️

$PEP would be my choice on those!

Might be too deep for a Saturday morning, but it just reminded me that nothing lasts forever. Even what you consider the most important thing will fade away in time.

Coke to drink, Pepsi to invest

Thank you for the feedback! 🤝