Today for the first time, the price action in US Stocks and Future Indexes was so different that I got a feeling I was trading against others’ computers.
During Summer, especially during August the lack of volume is key and can increase sharp move in either direction. However, it today it was different, it not just simply momentum algos or trend following systems, it is something that it might not clear to me for a long time.
My hypothesis is that ETFs, Mutual Funds Firms. High Frequency matching orders Systems or other large sophisticated players are dominating those thin markets.
Tomorrow is a FED day in the end of August after an impressive push. I will be watching with caution.