Market is overpricing risk (update 8) - Volume (less), Algo (HFT) markets forming; stocks, risk trades

High risk markets forming across the board with algorithmic trading (computer) being almost the only market support. High frequency trades on low volume from stocks through to risk currencies. Advisable to sit on the sidelines or buy put protection (out of the money) on overbought risk plays.

HFT has a knack to cover up volatility as overbidding smooths out prices. But volume indicators show that thin volume trades are increasing in ferocity (most notable is the AUD trade).

Any panic sell on geopolitical tensions/trade war escalation or bond markets (missed coupon payments on high yield sovereign held debt/bonds) will be dramatic and swift

refer: Dow (self explanatory)



AUD (self explanatory)