The thinness here is insane but it shows you how little power individual investors and managed funds have to even buy in any size given fears of redemptions by others between here and year-end.
Just one look at the stock of Amazon (AMZN) tells all. The market "wants" to rally but there is little ability given the waves of S&P and ETF selling that is not stopped by technical levels because it is driven by fear a la 1987..
What is truly amazing is how we got here. No big institution can seem to step in. There is no big Fidelity bid. There are no hedge funds stepping in. That's what makes it feel like September of 2008 to February of 2009.
Of course, the difference is there is huge solvency now versus back then. At the same time the fear that there is total chaos is making people feel that it is just not worth the pain after a long run of a rally.
In this case there are tons of people, I believe, who feel the whole run since Trump was elected.
I think this selling, though, is much less political and much more Fed-driven given the incredibly competitive CDs that we haven't had in ages.
Who can blame people?
At what point do the fundamentals matter? Very tough call because we don't know if the tariffs, the rate hikes and the bond runoff really crush liquidity even more than it has.
Again, we can bounce. We can bounce if there are people who say "you know what? We have some real bargains here."
The issue is that we do not have any individual buyers to speak of and the buyback power may have been eroded by all of the stock that was bought much higher.
Consider Apple (AAPL) . Is the company buying here? Shouldn't it be? Unless it spent too much much higher. Or Facebook (FB) . It's got a buyback and it could show that its business isn't falling apart. The company has so much cash. Ditto Alphabet (GOOGL) .
But here you run into the other problem. You have these high dollar stock numbers and they are so easy to knock down. You can see hedge fund managers buying big amounts of puts on these high dollar amount stocks and it can be such a big percentage homerun versus lower dollar amount stocks, especially because the ETF selling (especially of the silly ETFs, the 10 that own FANG) really accentuates the decline.