What would you do if you are Citadel?
Citadel is the second largest multi-strategy hedge fund in the world, with their daily trading volume accounting for 3% of daily trading activity in New York and Tokyo., 10% of daily
I guess Citadel is one of those who shorted stocks and longed treasuries earlier in or prior to the correct correction.
What Citadels would do next?
Are Citadels going to pull Dow 12040 away under bulls’ feet for another lower low of the current correction?
PPI will be out on 8:30ET Thursday and CPI 8:30ET Friday. If it is bad enough and incur inflation fear on top of recession fear, it would be a “stagnation” trial on bulls again, as in last summer.
If not, would Citadels start to move some of their money back to stock market from treasuries? That would induce violent bargain hunting
Today’s session is a lackluster one, without Citadels seen.
Data points
Daily trading volume of Treasuries by primary dealers. averaged $501B in 2004, while the combined daily trading volume of NYSE and Nasdaq together is about $70B, and daily trading market volume of currency trading is over $2T in 2007 (per Citibank and NobleTrading.com)
marketreflections.com
Financial market is a dark universe full of uncertainties, with both beauty and beast floating around. Rationality is the small candle we have, when it dims, emotion comes in.
