The Upcoming Dark Swan Of Dark Swans?

In a recent ship (hat tip: Russell M.), Tyler Durden at Zero Hedge quoted a quant trader maxim that "Anyone who is doing anything sensible correct right away is either losing coin or is out of the marketplace entirely", in addition to that "liquidity deleveraging is approaching (if non already is at) critical levels", in addition to finally the scariest part: "we accept crossed into major statistically deviant territory, probable approaching a grade that is six measure divergence away from the recent norms."

He pointed out that NYSE weekly book is running close 9% below 52 wk average. But this may non necessarily live the number of deliberate hedge fund deleveraging or increasing risk-aversion past times quant traders. From my personal experience, the green opportunities for mean-reversion accept only markedly decreased inward the lastly few months, amongst much of the cash sitting on the sideline. I believe that quant traders are however gear upwards jump inward at whatever fourth dimension to render liquidity should the marketplace demands it. I don't shout out back that the recent marketplace status portends a 6-sigma event, but if i should occur, it may genuinely live a dandy profits chance for many short-term mean-reversion traders only every bit inward those past times 6-sigma events.