Global punchcards
The market adjusted alot yesterday at 3pm est, on the top of the hour. I was wondering about the time as well as the suddenness. Things that happen at the top or the bottom of the hour seem to be more likely to come from systemic causes. Markets open at the top or bottom of the hour. Markets close. Banks open and close. But 3 pm EST wasn’t one of those times anywhere on the globe. However it was Midnight in Dubai, Alot of banking happens there. Midnight is usually when batch processes are scheduled to kick off.
I’ve got a theory that the China selloff the previous day left a few LARGE accounts rather dry in Dubai. Automated batch processes spooled up to at Midnight and like good little drones they sold off off their stake in some holdings to cover the losses.
Sort of like each major financial market is like a needle sticking up in one of those wind up music boxes, waiting to pluck those 5 chords (market open,close, bank open,close, Midnight ( settle the account time ) )