And you thought fake news was just for politics
The intersection of news and politics has made trading a whole new ballgame
The old adage was that politics didn't matter to markets, especially not in the short term. Politics was something traders did once they were rich or washed up.
Politics is everywhere. The past two days of trading -- if not the past 7 months -- has been all about politics. It's a different trading landscape, it's a different way to trade. It's all sentiment driven.
What happened today?
We still haven't gotten to the bottom of today's drop in cable and subsequent broad US dollar rally. My best guess is the Infowars/ZeroHedge gotcha story on Comey is what's behind it. I hope I'm wrong.
Because if that's the case, it shows that fake news isn't just infecting politics, it's spread to markets. Normally, you would expect some coolheaded assessments in markets but political information -- even mainstream news -- isn't reliable.
So everyone is trading on political rumours, slant and fake news. That's a heckuva way to try and trade. Rumours aren't new to markets but what's different about politics is that it doesn't even matter if the rumour is true. So while there might be yet-another rumour about a bid for Twitter, at least you know the market will punish anyone who chased it if it's wrong. With politics, does the truth even matter anymore?