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Went back to look at FAS, and both gaps down on SPX, FAS was dumped....TraderGirl wrote:spx keeps gapping down intra-day...are financials being dumped??
Thanks, I tryvictorm wrote:Your smileys r so funny …Petsamo wrote:The bear flag is looking real good on the daily chart but I have a feeling the prophecy won't come through.TraderGirl wrote:spx...???
Well, at least I hope not. I'm mostly long.
Nice I trade FAS, look here, they took out a leg of SMH, INTC gap reversal. the commanding officer is last to go.TraderGirl wrote:FAS looks more bearish...
We are not (I'm not) discussing what has been thought of as a computer making decisions. We are talking about the legitimate jumping ahead of orders and violating the law by placing thousands of bids and offers a second with no intention of those orders being filled and shaving as low as 1/100th of a a 100,000 times with millions of shares a day AND getting paid for with no commission cost AND getting paid to break even in some instances.Al_Dente wrote:TO READ LATER, NOT NOW
Contrary to popular opinion…
Program trading is not necessarily a bad thing.
I guess you really haven't been reading my insightful comments. I juxtaposed the entire volatility collapse from exactly the point you just made 3-4 weeks ago. More firms rushed in and will work for almost any profit. Not unlike illegals coming into America, they will build houses and union carpenters can't get work. Something is better than nothing. And 99.9% of traders do not have access to virtual light speed trading or knowledge of orders.<snip>
Then maybe they hired too many “quants,” and HFT high frequency trading firms opened up to take advantage of pennies, arbitraging the bid/ask spreads,
if you will, and other games, on a massive scale, etc…. Then maybe things started going haywire and now we’re in a bit of a mess…. SNAFU
They are institutionally raping clients!. No one is stopping them. I'm not a republican, but given that we are witnessing the biggest financial crimes in history, as per Professor Black who prosecuted the S&L debacle, it's safe the say it wouldn't be as bad under a republican administration because there was a republican administration that did prosecute some people and the crime is now on steroids not just on Wall Street, but in most areas of this administration from Panetta paying $550 for a Gulfstream 550 to fly him home each weekend. That is a $52 million dollar plane that we pay for.But no need to blame it on a republican or a democrat or a dysfunctional congress, or a disgraced dead dictator.
If the term "hateful" was referring to my words, you are way off base. These are forensic comments I have made. I know my stuff....amateur traders might be offended by not knowing, but professionals will agree.edwindes wrote:thank you Al for your sane and wise comment. you exhibit the tact i lack to stop the petty and hateful things that are being said with the lack of understanding that others on this board may be offended.
When that happens they are not consider gaps like other ones we normally think of (overnight) as gaps do not occur during a trading day unless trading has been halted. With an index it is a calculation. That SPX has a missing value is due to a calculation for any of a number of reason. If, for example, SPY was trading at 1 PM at 138.00 and the next tick is 137.50 it's not a "gap". It's no different than if it traded at 137.98 and 137.99 was missing. On smaller bars you are seeing gaps. On larger frame they will begin to disappear. Traders, at least not ones that understand the mkt, will say "we have an intraday SPX gap at 138.15 to fill".TraderGirl wrote:nice gap down to the 200dma on the 1 minute...
Mr. Walsh,SWalsh wrote:It is taking only 100 stocks quote stuffs to move SPY 10-12 ticks. I've never seen it this thin.Cobra wrote:so far goes as planed. I'm still neutral. didn't have a good sleep last night, so I'm very sleepy now, what a boring market.
I am listening to John Batchelor's Sunday night radio show that is syndicated on WABC. So far, I cannot find the 10 minute discussion on High Frequency Trading, the damage it has done, and the FBI investigations.
Here is a letter from Tradeworxs, that has helped design trading systems, and the biggest pile of manure as to why HFT is an asset to the mkt. Now this is curious to anyone with a brain cell. They admittedly rarely lose, yet they argue that to hinder their operation would be bad for the mkt.57chevy wrote:Mr. Walsh,SWalsh wrote:It is taking only 100 stocks quote stuffs to move SPY 10-12 ticks. I've never seen it this thin.Cobra wrote:so far goes as planed. I'm still neutral. didn't have a good sleep last night, so I'm very sleepy now, what a boring market.
I am listening to John Batchelor's Sunday night radio show that is syndicated on WABC. So far, I cannot find the 10 minute discussion on High Frequency Trading, the damage it has done, and the FBI investigations.
I don't post much here but I'm in the habit of seeking out your thought-provoking commentary, especially the facts and insight you provide about HFT. You've stimulated my interest and helped me to grow much more knowledgeable about this important subject. Keep up the good work. HFT is a dreadful affliction. Don't let the naysayers get you down. You're one of the best things about this blog.
I'm glad I dropped back to find the above. I think you should consider posting that analysis tomorrow so more can understand this change in the market we have witnessed and how it happened.SWalsh wrote:Let me give a simple example why the comments about "Program Trading" posted earlier are rather naive. And I do hope the many who hit Cobra's site read this twice and consider that it has not been written by someone who does not know how this "game" works. I'm guessing that 98%+ of people here have never been professional Wall Street traders. I am not one of that number.
The Game Facts: (this example will simplify the effects of HFT on your ability to profit)
1 - The market, less commissions which many HFTs pay little to nothing, has a certain number of winners and losers per day participating. That number has dwindled. An article the other day asked where all the volume has gone and stated we are at lower levels than Dec, 2007.
2 - Of the amount lost in a given day an equal amount is made(for the sake of simplicity we will not consider commissions)
3 - In any given "game" (let's use professional poker and there are 5 tables to play at but this one right now is unique) for someone to positively never lose on a given day they must be able to see every card on the table as they leave the deck in a game of Texas Hold 'Em. They will not win every hand as their cards are not always the best hand. But they know when they will win and can strategically bet in such a way that their winning hands far outweigh the losing ones. Plus, they can fold, but just not every hand they do not win as that would signal something fishy. Yet in the HFT world, a six-shooter is not aimed at your gut under the table so you can not play, or quit, if so desired and there is no one to complain as you are invisible in a computerized world.
Now, you are a short-term player , by definition, in that card game. It can last 4 hours or even 24 hours, but it ends. There is no "long-term". To foolishly, or mistakenly, enter that 1 of the 5 tables where the cards are marked to just one individual is to court financial disaster. There are 4 other tables that are not corrupt in this example, but you do not know of them. To you they are all the same in one casino and your seat is comfortable and the drinks are free and with a smile. As you sit there and continue to play, not realizing that the one player/entity seeing the cards is not taking all the money available, but just a nice profit, so that you remain, you think that you still have a chance to profit. But the winning portion for the remaining players is smaller. It MUST BE as one player is systematically removing chips from the table. Plus, while you are playing, friends of the crooked individual have manged to takeover the remaining 4 tables. There is no place left to go but play in a game that is corrupt, but you don't know it, won't admit it, and naive people tell you that you need to practice on a simulator and come back when you have money again to play with.
WOW....this guy sent me a PM, then blocked me, that he hopes I enjoy HFTs, a cavity search, and "pulling a Briebart".edwindes wrote:thank you Al for your sane and wise comment. you exhibit the tact i lack to stop the petty and hateful things that are being said with the lack of understanding that others on this board may be offended.