Bots TAKE liquidity, NOT make it.
Bots are liquidity takers, don't let the mouths in suits make you believe otherwise. Vested interest.
Bots eat your liquidity and grow fat.
Liquidity != volume.
And there are different bots out there, not just HFT.
A quick rise in the XJO?
Methinks not. One of the largest market short positions in a long time has been unwinding slowly and in a controlled way. A quick rewind would have pushed the XJO quickly, a slow rewind, not so much.
What does this say?
A) Shorts are not so scared of a quick rise that they are in a hurry to close their positions.Being short can kill - but they taking it easy.
B) Neither are they keen to stay short.
Market goes sideways - perfect weather for trading bots - who get confused by trends.
XJO sideways for three years.Unlikely to change.
Last RBA chartpack noted that 100% of new jobs growth over the last year accounted for by part time jobs,
Welcome to the insecure poor. How they gonna invest? How they gonna push markets up?
