The big role of computer program trading in the recent sell off in U.S. stocks is actually a positive, history says, for an early recovery

December 6, 2017 | Daily JAM, Morning Briefing | 2 comments

Earlier than usual end of the year profit-taking. Sector rotation. Stretched valuations. All seem to have played a role in the retreat in momentum stock that has driven U.S. stocks lower in the last 10 days. And now we’re getting experts on program trading pointing at the role of computers in the slump and especially systematic trading programs that rely on weighting what the strategy calls “factors” to guide buys and sells.