Cobra's Market View

well, that's about it...Dow Jones US TSM Float a monster -733...

we just had some huge dumpage today...even though the market flew nearly 17 handles higher from the low.

stucap wrote:

SB73 wrote:

jarbo456 wrote:HAHA. who just saw that spike?

What the hell was that spike all about? Wait until there is no liquidity and buy 5 shares????

That's kinda how Algos/HFT work......wait for low volume and one big buy takes out all the stops and then sell to suckers......

I cannot state that this is 100% correct, but I was told by a source that should know that the HFT machines, and I think there are only about 10 who have their computers connected directly to the exchange quote machines across the river in NJ, see EVERY order in the machines. Algos are not HFTs. They are located in Chicago, Florida, and LA (primarily) and are not as fast due to the time it takes for an order to pass along wire. Milliseconds do count! Some boutique shops run them out of small office around the US.

After the August 9th drop, when they REALLY stuffed quotes in and crashed trading platforms, the funds were nailed 6 or 7 times in a row in that 75-100 SPX point chop. I think man of the funds turned off their machines to execution and are trading only in simulated mode. When they see they are making money again they will play. The volume is awful and I believe that's because the short-term trading funds walked away.

This will end one day. I'm just concerned what will exist after it stops!

SB73 wrote:What was the official close on spy? I show 128.84...stockcharts is always screwy. Looks like we will have a fair value gap though of 2 to 3 spx points.

"""""""stockcharts is always screwy""""""

THANK YOU THANK YOU sb
i always have to go to schwab then freestockcharts to find the truth !!!!!
free says 128.95 last trade; intraday high 128.96, haven't checked schwab yet, what a pain in the cabooooose

jarbo456 wrote:

CH37 wrote:my brokerage shows $128.84, but my short order stopped !!

your stops being hit is carrying this thing up even more! yes, i fully blame you.

Al_Dente wrote:

SB73 wrote:What was the official close on spy? I show 128.84...stockcharts is always screwy. Looks like we will have a fair value gap though of 2 to 3 spx points.

"""""""stockcharts is always screwy""""""

THANK YOU THANK YOU sb
i always have to go to schwab then freestockcharts to find the truth !!!!!
free says 128.95 last trade; intraday high 128.96, haven't checked schwab yet, what a pain in the cabooooose

On Fidelity Active Trader Pro I have $128.84.
Have a great week-end!

official now. cut to aa+ with outlook negative
http://www.zerohedge.com/news/its-offic ... k-negative

SWalsh wrote:

stucap wrote:

SB73 wrote:

jarbo456 wrote:HAHA. who just saw that spike?

What the hell was that spike all about? Wait until there is no liquidity and buy 5 shares????

That's kinda how Algos/HFT work......wait for low volume and one big buy takes out all the stops and then sell to suckers......

I cannot state that this is 100% correct, but I was told by a source that should know that the HFT machines and I think there are only about 10 who have their computers connected directly to the exchange quote machines across the river in NJ, see EVERY order in the machines. Algos are not HFTs. They are located in Chicago, Florida, and LA (primarily) and are not as fast due to the time it takes for an order to pass along wire. Milliseconds do count! Some botique shops run them out of small office around the US.
After the August 9th drop, where they REALLY stuffed quotes in and crashed trading platforms, the funds were nailed 6 or 7 times in a row in that 75-100 SPX point chop. I think they turned off their machines and are trading only in simulated mode. When they see they are making money again they will play. The volume if awful and I believe that's because the short-term trading funds walked away.
This will end one day. I'm just concerned what will exist after it stops!

“”””””””crashed trading platforms”””””””””””
SWalsh: That is “black swan” and it will happen (again), and we know precisely when it will happen: either sometime on Tuesday, or else Friday, or maybe next year….
and here is its theme song...http://www.youtube.com/watch?v=3HbFPdXvPUE

if u r bear, u need to love s&p.
downgrade more!

Al_Dente wrote:“”””””””crashed trading platforms”””””””””””
SWalsh: That is “black swan” and it will happen (again), and we know precisely when it will happen: either sometime on Tuesday, or else Friday, or maybe next year….
and here is its theme song...http://www.youtube.com/watch?v=3HbFPdXvPUE

I can't say you are the first to send me that, but I had forgotten it until i saw it....LOL

SWalsh wrote:

Al_Dente wrote:“”””””””crashed trading platforms”””””””””””
SWalsh: That is “black swan” and it will happen (again), and we know precisely when it will happen: either sometime on Tuesday, or else Friday, or maybe next year…. and here is its theme song...http://www.youtube.com/watch?v=3HbFPdXvPUE

I can't say you are the first to send me that, but I had forgotten it until i saw it....LOL

PLEASE post more often

SWalsh wrote:

stucap wrote:

SB73 wrote:

jarbo456 wrote:HAHA. who just saw that spike?

What the hell was that spike all about? Wait until there is no liquidity and buy 5 shares????

That's kinda how Algos/HFT work......wait for low volume and one big buy takes out all the stops and then sell to suckers......

I cannot state that this is 100% correct, but I was told by a source that should know that the HFT machines, and I think there are only about 10 who have their computers connected directly to the exchange quote machines across the river in NJ, see EVERY order in the machines. Algos are not HFTs. They are located in Chicago, Florida, and LA (primarily) and are not as fast due to the time it takes for an order to pass along wire. Milliseconds do count! Some boutique shops run them out of small office around the US.

After the August 9th drop, when they REALLY stuffed quotes in and crashed trading platforms, the funds were nailed 6 or 7 times in a row in that 75-100 SPX point chop. I think man of the funds turned off their machines to execution and are trading only in simulated mode. When they see they are making money again they will play. The volume is awful and I believe that's because the short-term trading funds walked away.

This will end one day. I'm just concerned what will exist after it stops!

By computers connected directly it is literally plugged into the servers in the same room and they pay a lot for that access.

dcurban1 wrote: By computers connected directly it is literally plugged into the servers in the same room and they pay a lot for that access.

I've only done a little research into the commission structures, but I recall in some cases where they can make a flat mkt and get paid for the trading. As to access, not anyone, regardless of worth, can join that club. It is a very elite one and that there could be collusion would be a far better bet given the arena we are speaking of than not.

Obviously it is cost effective, and it's also clearly against the spirit of anything even approaching a level playing field. Many of the HFT trades are completed in under 250 ms and have never had a losing day. The trade is only made to skim off the customer order, which has the Mutual Funds industry screaming. But it's feeding the banks who are still considered by many to be net broke and only afloat due to 2 sets of books. The one that counts holds real estate on the books at the highest price and performing. That this mkt trades anything like it did in 2008 is not a realistic statement; it is patently false. That is why we will see a gap up of 200+ Dow points via futures overnight. It stops the start of a downtrend as who wants to sell when they consider that maybe there was a good reason for the mkt to turn. August 9th appears to have been a wake-up call to be even more aggressive in not letting that setup occur. But on those large up days in particular we watch a flatline. No customer orders = little HFT activity. At that point they try to trick the algos into trading so they can skim off them. I read that Wall Street now employs 2000 PhDs in computer science and engineering. They have widely ruined the "game". They have clearly studied every trading methodology and generate signals to act when needed and then quickly put them into a loss. I was told DeMark signals have recently been a target of their affection. And this administration, via the SEC and the FBI, has no intention of stopping them as it was an early desire to remove speculators and leave only "investors". That was some ROI in donating to Obama but I'm sure they will donate heavily to Romney if he is the republican candidate. I know a state senator and he told me it's amazing how they will get money in an election from all directions, and if they win and their opponent got a lot more they'll be told they really wished they could have donated more but had certain internal issues than made them give more support to the incumbent. Then when they are elected they tell them how happy they are that they won. What's amusing is a politician talking about others lying.

Stock trading ideas:

http://goo.gl/7hn7e

What’s happening to the Weekend Watering?
Nobody awake or is it off?