“It’s Not Healthy” Trader Warns “Market Liquidity Looks Really Ugly This Morning”

Monday, June 25, 2018
By Paul Martin

by Tyler Durden
ZeroHedge.com
Mon, 06/25/2018

Whether it is Trump’s trade threats (and potential Yuan ‘weaponization’), Fed tightening, or global synchronous economic slowing, there are plenty of reasons to be less sanguine than the always-sunny Nasdaq portends (hey, just look at the Dow) but that is not why former fund manager Richard Breslow thinks “markets look really ugly this morning.”

It’s not about equities being down or yen up, as Breslow notes, it’s the dearth of liquidity!

In fact, as the former FX trader points out, it is the lack of liquidity that drives prices in the immediate aftermath of any event, distorts coherent analysis of what is going on and is creating an enormous disincentive to trade. And it’s all circular because cause and effect are rapidly reinforcing each other. It’s not healthy when the most honest answer to why an asset moved the way it did is, “People were the other way around.”

The Rest…HERE

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