As if several markets tumbles and heartstopping short squeezes in just the first two months of 2016 have not been enough to turn professional traders’ hair prematurely gray and drive all retail daytraders permanently out of the “market”, here is a warning from Wedbush’s otherwise quite somber repo market analyst, Scott Skyrm, according to whom the volatility is only just starting.
As he says in his latest note to clients, “over the past 20 years, there was a series of market sell-offs during the month of March. In 1998, it was the subject of a news story on CNBC. They claimed it’s a combination the market digesting the February refunding and Japanese investors preparing for Japanese year-end on March 31st. These days, world markets are more complex than in 1998, but there continues to be a series of market panics and crashes in March.”
And while the past may or may not be prologue, here is a brief history of the March crashes in the past 25 years which could signal a comparable event is on deck in what is already an extremely jittery market.
This post was published at Zero Hedge on 02/24/2016.
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