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SocGen: "This Is What Happens When The Algos All Head For The Exit At The Same Time"

SocGen: "This Is What Happens When The Algos All Head For The Exit At The Same Time"

After Goldman, JPM and even Dennis Gartman all opined on Friday's "tech wreck", in which the Nasdaq tumbled 2% as the Dow Jones hit new all time highs (the only previous time it has done that was in 1999 just as the tech bubble was ramping up), and when the Philly semiconductor index fell 4.2%, SocGen's Andrew Lapthorne could not resist, and in a note released on Monday morning, explains that what happened on Friday was merely an episode of "systematic momentum selling", or said otherwise, a teaser of what happens when the algos all "head for the door all at the sam

"Tech Wreck" Goes Global Dragging Worldwide Markets Lower; Cable, USDJPY Slide

"Tech Wreck" Goes Global Dragging Worldwide Markets Lower; Cable, USDJPY Slide

First the bad news: following Friday's "tech wreck" European equity markets have opened lower, with the Stoxx 600 sliding 0.9% and back under the 50DMA for the first time since December, dragged by selloff in tech shares, mirroring Asian markets as Friday’s "FAAMG" volatility in U.S. markets spreads globally, battering shares from South Korea to the Netherlands.

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