Can this really be a kind of herding stampede behavior over Cowork? It’s been out several days now and just all the sudden today, all the traders suddenly got it into their little herd animal heads that everyone should rush to the exists… after that equally sketchy silver and gold rug pull type action last week?
Something seems quite off. Am I the only one?
I'm out of the loop, but I thought there were sophisticated automated trading algorithms where people pay to install microwave antennas so they can have 1ms lower latency. And I thought those systems are hooked up to run sentiment analysis on the news. Maybe the news is late?
That is generally only applicable to extremely momentary arbitrage opportunities. There's still a lot of automation though, but it's pretty boring. It's basically look at the news and make a recommendation to a fund manager or something, and various competing vendors of such, down to consumer products like that.
It could also be that we have been in an economy-wide speculative bubble for a couple of years. Whispers of an AI bubble were a way to self-soothe and avoid the fact that we are in an everything bubble.
Markets are not as efficient as the textbooks would have you believe. Investors typically rely on a fairly small set of analysts for market news and views. It might take those guys a while to think about stuff, write a note etc. The deepseek crash last year lagged by several days as well.