Jul. 2 at 6:08 PM
$SES All tech is in the same boat at the moment. Fear of the Fed hiking rates eased briefly, then came roaring straight back. This is largely macro and algo-driven, which means entire baskets of companies in the same sector get hit whether individual companies deserve it or not.
And just because you’re short, don’t fall under the illusion that you control the market. Big funds move it through massive algorithmic trades. When they dump or short a sector basket, smaller traders are simply catching a slice of that move by trading with the flow.
But the same system works in reverse. The moment those funds decide to refill those baskets, the buying pressure can flip violently, profits get taken on the opposite side, and crowded shorts can be squeezed very quickly. None of us on either trade are truly steering the ship, we are all small fish. Big funds do.
