Every Crash Has a Trigger. This One Is Already Here.

Every Crash Has a Trigger. This One Is Already Here.

By Prof. Jeffrey Bierman, CMT

Hey trader,

Friday morning was a "cell program"...as in a prison cell.

Private credit funds are trapped in a $5 billion cell right now as investors rush for the exits.

That headline alone told me everything about where this market is heading.

Most people think the market is falling because of the war. The war is already priced in.

The real driver is credit. Private credit funds are liquidating stock positions to fund redemptions back to their investors.

That mechanism will not stop until the credit pressure is relieved. This weekend, I want to walk you through something most traders have never studied.

It is a framework from the 1800s that explains why this is happening and how long it could last.

Algorithms control this market. So why not do what they do?

I built the algorithmic logic that powers Wall Street's trading machines at ThinkorSwim for over 7 million clients. I know what these algorithms trade off of. It is not price levels. It is slopes.

That technology is called the Genesis COG. It allows algos to fire off multiple orders simultaneously, defending or attacking price based on slope direction across every timeframe.

The Genesis COG Scanner detects when those slopes shift before the move hits the tape. It identified the weekly deterioration in the S&P 500 while most traders were still buying the dip into a down slope.

See how the Genesis COG Scanner detects market changes in real time →

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