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Attempting to keep this as smooth brained as possible. If you have questions, I’ll be more than happy to answer below. What does a liquidation to meet margin requirements look like? Step 1: Force close open short interest (market wide). What does this look like? VIX is the Chicago Based Options Exchange (CBOE) Market Volatility Index. When volatility in the options market increases, this index rises. It takes massive amounts of volatility to move this indicator large amounts. Result: VIX will show a sharp spike due to so many positions, market wide, being closed. VIX was halted after 10% increase after 2min. Halt lasted for 5min. Step 2: Forced buying of shares to settle the closed positions What does this look like? For those of you who are familiar with Wycoff theory, it would look like accumulation, markup, distribution, then markdown. Impact = Increase in market prices across the board, ETF’s, commodities, everything, the whole kitten and caboodle. Step 3: Market value is extracted by long institutions. What does this look like? Refer to Wyckoff Price Cycle chart. Impact = Major price markdowns across the board from long positions selling. No picture required, we all have seen the posts today, but you can see it in the SPY picture below. All 3 steps were achieved today. Starting at exactly 14:00 EST, Step 1 was initiated followed by Step 2 starting at 14:19 EST, and Step 3 starting at 14:47. Bonus material: This wasn’t the first time it happened, it was just way more noticeable today. 9/19 15:12 EST. submitted by /u/Coldsteel_BOP to r/amcstock |