I think that this comment addresses some of the reasons why we are seeing more volatility:
Today, since almost 90% of daily US Equity trading is what we call “systematic”, we have at least $2 TRILLION in assets under management that is betting on purely quantitative strategies … and at least another $1 TRILLION behind that running “net neutral”, constantly using options and ETFs to delta-hedge portfolios in real-time.
What does that do to The Machine? It makes it go faster.
Especially on the most critical Factor Exposure in The Machine (price MOMENTUM)… and on the most critical duration (1 MONTH)… rules-based execution pushes prices up/down faster than ever before.