This is topic DJIA Circuit Breakers in forum Off-Topic Post, Non Stock Talk at Allstocks.com's Bulletin Board.


To visit this topic, use this URL:
http://www.allstocks.com/stockmessageboard/ubb/ultimatebb.php/ubb/get_topic/f/14/t/007398.html

Posted by glassman on :
 
Anybody want to predict we'll see 7% losses trigger the circuit breakers?

A five year chart on the DOW looks pretty ugly to me, i see no support - NADA.

I pulled out compleltey during the Greek thing cuz we are buying some land and we had good profits over the last six years. I shoulda said something here, but i watched the markets gain several hundred more points anyway. I don't see a technical bottom anywhere right now, but i am looking to find re-entry.
 
Posted by glassman on :
 
the five year chart looks like it could have some support at about 14800 from July '13 after that it's no mans land. the July '13 is not a strong indicator to my mind...
after what we saw in '08-'09, it seems to me that the algorythms are in charge and we could see anything happen. I expected teh depth of that fall the be about half what it was.
 
Posted by glassman on :
 
On Friday everyone was saying they expected abounce back this morning, and i didn't see why they expected it. The shortsellers don't have to cover right nowbecuase of the lack of technical support int he five and ten year charts,


Dow 5,000? Yes, it could happen
MarketWatch By Brett Arends
1 hour ago



Plunges By 500 Points Forbes

Such a scenario can’t be completely ruled out


(Editor’s note: This story was originally published Friday. Time references have been changed.)

Don’t be surprised if stock markets stabilize or bounce back in the next couple of days. Markets are due at least a short-term rally after last week’s dramatic plunge. This usually happens after a sell-off, no matter what the next big move is going to be. It doesn’t mean anything.

But anyone who automatically assumes this is another easy “buying opportunity” is talking nonsense.

For the past couple of years, Wall Street’s perma-bulls have had it their way. They’ve been gloating openly as stocks went up and up and up, seemingly without pause.

It got to the point that those warning about valuations and danger signs had been mocked into silence — or were simply ignored.

Not now.

I don’t mean to be alarmist or to induce panic, but someone needs to tell the public that there is a plausible scenario in which the U.S. stock market now collapses by another 70% until the Dow Jones Industrial Average falls to about 5,000. The index tumbled more than 3% to 16,460 on Friday and over 1,000 points in early trading Monday.

Dow 5,000? Really?

For 30 years, stock prices have been increasingly boosted by financial factors: collapsing interest rates and Federal Reserve manipulation, culminating most recently in ‘quantitative easing.’

I’m not predicting that will happen, but contrary to what the bulls tell you, it cannot be completely ruled out.

And even if that ranks as an outlier and a worst-case scenario, there are other, more likely scenarios where the Dow falls to somewhere between 10,000 and 12,000.

In other words, although this might be a buying opportunity, a serious reading of history suggests this sell-off might also be the beginning.

Let me say on the record that I am not joining the perma-bears or extreme doom-mongers. I am simply pointing out that the perma-bulls have taken their own arguments way too far. The stock market is not doomed to collapse to oblivion, as some hysterics keep claiming. But it is not certain to keep going up by 10% a year, either. All those claiming that every sell-off is a buying opportunity, and that stocks “always outperform,” are lying to you.

A true understanding of stock market history shows that Wall Street in the past has moved in long, long swings upwards and downwards, often taking years or even a generation or two. There is a great deal of evidence suggesting that the upward move that began in 1982 is one of them — and that the downward move that first began in 2000 has not ended.
Read: Meet the market timer who said things would get ‘ugly’

As stock market historian Russell Napier points out in his book “Anatomy of the Bear,” on five occasions in the past 100 years — in 1921, 1932, 1949, 1974 and 1982 — those big downward moves have not ended until share valuations have fallen to just 30% of the replacement cost of company assets. That’s using a powerful, if little-known, economic metric known as Tobin’s q.

And, to cut to the chase, if Wall Street stocks followed the same path today, that would take the Dow down to about 5,000, and the S&P 500 Index all the way down to around 600. (The S&P 500 slumped more than 3% to 1,971 on Friday, extending the drop as much as 5.3% on Monday.)

Yikes.

The “q” is a valuation that they don’t even mention in the training manuals for the official “financial planner” and financial-analyst exams. Your money manager has probably never heard of it. Or, if he has, he probably ranks it with astrology and the mystic rantings of Nostradamus.

But the “q” happens to have by far the most successful long-term track record of any stock market indicator.

It’s been better than the price-to-earnings ratio or quarterly earnings forecasts or economic growth rates or long-term interest rates or Federal Reserve minutes.

Independent analysts — such as professor Stephen Wright at London University and Andrew Smithers at Smithers & Co., a financial consultancy in London — have tracked it back over 100 years.

And in the past there has been no better guide for the long-term investor. It’s been even better than the cyclically adjusted price-to-earnings measure, also known as the “Shiller PE” after Yale finance professor Robert Shiller (which also, incidentally, suggests U.S. stocks could plunge a long way from here).

The “q” looks at the net asset values of public companies and adjusts them for inflation. It makes some intuitive sense. Why would Widget Inc. be valued at $1 billion on the stock market if you could start the company from scratch for a lot less?

Right now, according to data from the U.S. Federal Reserve, the reading on the “q” is about 100%. (It was 106% at the last reading, on March 1, but the S&P 500 has fallen about 10% since then.)

Since World War II, the average “q” reading has been about 70%. So if Wall Street tumbled just to its modern average valuation, that would take the Dow Jones Industrial Average down to about 12,000.
See: When the stock market last crashed, these sectors fared best

If we just look at the period 1949 to 1994 — in other words, before the gigantic, off-the-charts boom of the late 1990s — the historic average “q” reading for stocks was 57%. If the market falls to those levels, that would take the Dow to about 9,500.

And if the market fell to its historic bear market lows, namely 30% or so, that would mean a Dow of about 5,000.

Why might such a scenario happen? It’s not just about China, or Greece, or slowing earnings, or the “death cross” on Apple’s stock. It would be because, for the past 30 years, Wall Street stock prices have been increasingly boosted by financial factors: collapsing interest rates and Federal Reserve manipulation, culminating most recently in “quantitative easing.” But at some point, that game has to come to an end. When it does, it is possible — not certain, but possible — that valuation metrics could unwind all the way back down again.

Past performance, as they say on Wall Street, is no guarantee of future results. And that means there is absolutely no guarantee that share prices in the future will follow a similar path to the one seen in 1921, 1932, 1949, 1974 or 1982. I would consider that to be very much the outer range of possibilities.

The real reason to be worried right now isn’t that these scenarios are guaranteed or even likely. It’s that 99% of the people managing America’s money, probably including yours, assume that they are completely impossible. And no, they aren’t. Have you factored that into your plans?


Brett Arends is a MarketWatch columnist. Follow him on Twitter @BrettArends.

 
Posted by Relentless. on :
 
quote:
Originally posted by glassman:
the five year chart looks like it could have some support at about 14800 from July '13 after that it's no mans land. the July '13 is not a strong indicator to my mind...
after what we saw in '08-'09, it seems to me that the algorythms are in charge and we could see anything happen. I expected teh depth of that fall the be about half what it was.

Switch to the weekly chart. Support as of right now is the 200 week moving average, which is what it bounced off of yesterday. The next week or so will rise a bit and level off, then a re-test of that support. If it actually makes it below? Hory sheet because the next level of support is far lower.

Remember the chart I posted a couple years ago?? Still in play me thinks, just took longer to mature than I expected.
 
Posted by Relentless. on :
 
 -
 
Posted by Relentless. on :
 
 -

Is the end nigh??

Next few weeks and months could be very interesting...
 
Posted by glassman on :
 
quote:
Originally posted by Relentless.:
quote:
Originally posted by glassman:
the five year chart looks like it could have some support at about 14800 from July '13 after that it's no mans land. the July '13 is not a strong indicator to my mind...
after what we saw in '08-'09, it seems to me that the algorythms are in charge and we could see anything happen. I expected teh depth of that fall the be about half what it was.

Switch to the weekly chart. Support as of right now is the 200 week moving average, which is what it bounced off of yesterday. The next week or so will rise a bit and level off, then a re-test of that support. If it actually makes it below? Hory sheet because the next level of support is far lower.

Remember the chart I posted a couple years ago?? Still in play me thinks, just took longer to mature than I expected.

thanx for that relent, i see it now. so in the next two weeks we *should* test that low again and if it holds we have (almost) our 10% correction, but if we drop thru it there will be blood...

that's sort of how i was feeling it but i was looking at 15,000 for suppoprt from the daily chart.

the 'funny" thing is that i feel like the low price of gasoline and deisel is going to fire up the economy alot.
the problem for he stock market IMO is that the banks have run it up with all their free cash from the FED and they can't keep it going without retail support which ain't showing up until we have about 18 months of cheap gasoline. after that, people will agaqin have some cash to invest/trade with... but not before..
 
Posted by glassman on :
 
I would love to see 11000 again, but i'm just being greedy [Big Grin]
 
Posted by IWISHIHAD on :
 
Originally Posted By Glassman:
the 'funny" thing is that i feel like the low price of gasoline and deisel is going to fire up the economy alot.
the problem for he stock market IMO is that the banks have run it up with all their free cash from the FED and they can't keep it going without retail support which ain't showing up until we have about 18 months of cheap gasoline. after that, people will agaqin have some cash to invest/trade with... but not before..
-------------------------------------------------

The oil companies and our state and federal goverment are ripping us off. How does oil drop to where it is and still see $3.50- 4.00 a gallon for gas.

Gas should be under $1.50 now,if you calculate this by the reason they used to raise gas prices in the first place.

They always have an excuse why it is high. What a monopoly a lot of exclusive people are in on, a paying slot machine that never stops paying big dividends.

-
 
Posted by Relentless. on :
 
quote:
Originally posted by glassman:
I would love to see 11000 again, but i'm just being greedy [Big Grin]

May see much lower than that if I'm right. Hopefully I'm wrong.
 
Posted by Happy Valley on :
 
quote:
Originally posted by IWISHIHAD:
Originally Posted By Glassman:
the 'funny" thing is that i feel like the low price of gasoline and deisel is going to fire up the economy alot.
the problem for he stock market IMO is that the banks have run it up with all their free cash from the FED and they can't keep it going without retail support which ain't showing up until we have about 18 months of cheap gasoline. after that, people will agaqin have some cash to invest/trade with... but not before..
-------------------------------------------------

The oil companies and our state and federal goverment are ripping us off. How does oil drop to where it is and still see $3.50- 4.00 a gallon for gas.

Gas should be under $1.50 now,if you calculate this by the reason they used to raise gas prices in the first place.

They always have an excuse why it is high. What a monopoly a lot of exclusive people are in on, a paying slot machine that never stops paying big dividends.

-

I'm not sure how many of these oil companies will survive 18 more months of current prices. This entire sector is leveraged up to their eyeballs with the debt that fueled the shale boom, the amount of debt these companies carry is mind blowing. Once hedges expire, servicing this debt is going to become next to impossible for many of them.

U.S. fracking gave us low energy prices and they can take it away just as quickly. OPEC would love nothing more than to watch this space crash and burn so they can get on with business as usual. You think it's a monopoly now, wait until the majors and OPEC own it all...
 
Posted by CashCowMoo on :
 
quote:
Originally posted by Happy Valley:
quote:
Originally posted by IWISHIHAD:
Originally Posted By Glassman:
the 'funny" thing is that i feel like the low price of gasoline and deisel is going to fire up the economy alot.
the problem for he stock market IMO is that the banks have run it up with all their free cash from the FED and they can't keep it going without retail support which ain't showing up until we have about 18 months of cheap gasoline. after that, people will agaqin have some cash to invest/trade with... but not before..
-------------------------------------------------

The oil companies and our state and federal goverment are ripping us off. How does oil drop to where it is and still see $3.50- 4.00 a gallon for gas.

Gas should be under $1.50 now,if you calculate this by the reason they used to raise gas prices in the first place.

They always have an excuse why it is high. What a monopoly a lot of exclusive people are in on, a paying slot machine that never stops paying big dividends.

-

I'm not sure how many of these oil companies will survive 18 more months of current prices. This entire sector is leveraged up to their eyeballs with the debt that fueled the shale boom, the amount of debt these companies carry is mind blowing. Once hedges expire, servicing this debt is going to become next to impossible for many of them.

U.S. fracking gave us low energy prices and they can take it away just as quickly. OPEC would love nothing more than to watch this space crash and burn so they can get on with business as usual. You think it's a monopoly now, wait until the majors and OPEC own it all...

The bankruptcies have already started. A trickle of them, but 1Q next year and into spring is going to be ugly. Lots of crude contracts end, and massive debt servicing really starts the squeeze for the shale producers.

Denver business journal has good coverage of that in their energy section. Mostly the rocky mountain production but also shale players who are based or somehow tied to Denver.
 
Posted by IWISHIHAD on :
 
Maybe be will finally start a massive move towards other ways to fuel our cars, not that tough, but unlikely.

I had a water well redone, and this guy also does new oil wells. A lot of land owners in different states are now releasing their oil rights and allowing him to drill more wells, so maybe more smaller guys will get in.

Seems like once you get the oil pumping there isn't a lot of costs after that, especially if there in an area where they can pipe it to a main line.

Even without a main line seems like there is money in it. I have never checked it out, so this is just a guess on my part.

-
 
Posted by CashCowMoo on :
 
There is money in it. California is probably one of if not THE hardest states to operate in.
 
Posted by IWISHIHAD on :
 
Seems like Ca. is the hardest state to operate anything anymore, and one of the most expensive overall.

But there are still few wells in places you do not expect them to be, like the middle of Huntington Beach etc.

There use to be a lot more between Long Beach and Huntington.

There are still some off shore a few miles, those are fairly new in respect to the ones that were on shore in these areas.

-
 
Posted by Happy Valley on :
 
quote:
Originally posted by IWISHIHAD:


I had a water well redone, and this guy also does new oil wells. A lot of land owners in different states are now releasing their oil rights and allowing him to drill more wells, so maybe more smaller guys will get in.


-

I don't entirely disagree with smaller operators participating but when dealing with a commodity that effects entire economies on a global level, it needs to be done responsibly.

I think all of these smaller operators are a large contributor to the collapse in oil and gas prices. At $100 oil, even the chucklehead operators could pay the bills but now it takes 2 or 3 times the oil production for these same operators to service the same debt. These inefficient operators that are in over their head have no choice but to keep the production wide open, regardless of price. Banks are just as much to blame here, they gave cheap money to every energy company with a good sales pitch. In the end, they will once again be the ones holding the bag.

The lean and efficient companies will make it through this mess and the operators who had no business being in these large oil fields in the first place will have their acreage and production picked apart in bankrupctcy.
 
Posted by IWISHIHAD on :
 
Originally Posted By Happy Valley:

I don't entirely disagree with this but when dealing with a commodity that effects entire economies on a global leve, it needs to be done responsibly. I think all of these smaller operators are a large contributor to the collapse in oil and gas prices. At $100 oil, even the chucklehead operators could pay the bills but now it takes 2 or 3 times the oil production for these same operators to service the same debt. These inefficient operators that are in over their head have no choice but to keep the production wide open, regardless of price. Banks are just as much to blame here, they gave cheap money to every energy company with a good sales pitch. In the end, they will once again be the ones holding the bag. The lean and efficient companies will make it through this mess and the operators who had no business being in these large oil fields in the first place will have their acreage and production picked apart in bankrupctcy.
-------------------------------------------------

The problem is that the big boys got us until there sure we are really headed towards using other energy sources to power our cars. They do there best to make sure we don't.

It's easy to do, but they have to much money to spend paying off everyone that controls this process.

Natural gas is an easy conversion and there is so much available, but again the big boys have the majority control. I am not even going to waste the time talking about other energy sources.

Bottom line is the big oil companies aren't worried about loans from banks, they probably own most in a round about way, directly, or could if they wanted to.

Look at their profits over the years, and you can bet they have written off everything and then some, when we see their tax figures.

-
 
Posted by Happy Valley on :
 
Im in no way defending big oil, the point I was making earlier was that the reckless actions of many of theses brain dead operators will have lasting consequences. If U.S. Shale implodes because we continue to flood the market at depressed prices just to keep the lights on, we will be right back to where we were before the shale boom started. There will be very little consolidation here, the MLPs and service sector has already been making moves but there has been virtually nothing with the operators and there won't be, the liquidity isn't there, even with the domestic majors. Even if they could buy these companies outright, why would you take on their rotten balance sheets when bankruptcy is inevitable? There will be plenty waiting in line to take the acreage and production of these companies though. Probably use the proceeds from the crude short contacts they bought before they decided it's time to let US shale bury itself.

I could not agree more about your thoughts on natural gas. We have already seen massive conversion from coal to natty and I think we will see more once the pipelines and processing is in place. Not familiar with CA but most of the gas fields in the Utica and Marcellus are in the middle of nowhere with extremely limited access. These are huge projects and It takes time and vast sums of money to get the pipeline from point A to point B. It will happen, just need the infrastructure in place first.

As far as other forms of energy, it's a long road for sure but I don't think it's entirely out of the question either. Im not sure guys like Elon Musk can be bought by the XOM and CVX of the world. I think he will inspire future innovators and visionaries to adopt the same mindset.
 
Posted by glassman on :
 
quote:
Originally posted by CashCowMoo:
There is money in it. California is probably one of if not THE hardest states to operate in.

Not just in oil either. When i was in Riverside, i tried to start a glass-blowing studio. The zoning guys wanted to see about 70,000$ in design plans. The strange part was that only one thing seemed particularly unreasonable. They wanted me to install a thirty five foot tall "chimney" for the glass furnace. Melting glass with natgas is about as clean as you can get, it was totally unreasonable to require 35 feet, and it would have caused a stronger updrafts which wastes fuel and heat. Between studio air quality controls and earthquake preparation the engineering firm gave me an estimate of 70K for the plans alone. I decided not to build an open access craft/art studio for the city based on this. I did have support from the local art community but not the quarter mill it would have taken to turn on the fuel. I was able to build here in MS without a single zoning inspection. Our county has no zoning inspectors at all, i don't even know if they have a zoning code and i've been here ten years [Wink] .Of course that means the neighbors can do whatever they want too, and some of the things i see are just plain scary.
 
Posted by Relentless. on :
 
Futures are going down... The next couple months could well be the beginning of the end.
Still waiting for reversal confirmation...
 
Posted by Relentless. on :
 
By the end I mean this melt-up with low volume and low volatility we've endured.
We might well be there. Volatility re-introduced... Finally.
 
Posted by Relentless. on :
 
Futures down over 200... Might be an interesting day tomorrow..
 
Posted by Relentless. on :
 
 -


ruh roh
 
Posted by Happy Valley on :
 
Feeling the same way here Relentless, I went all cash late last week. Heavily weighted index names are holding us up but the "risk on" trades like biotech and the other high betas are being sold hard. Something stinks here jmo
 
Posted by Relentless. on :
 
Hey HV, always love seeing your input.

I took an alternative approach in that I went from cash to "in market". I see an opportunity in that big moves are coming.

Positioned to take advantage of a slumping/crashing DJIA.
 
Posted by Relentless. on :
 
Updated chart showing the initial reaction to the 61.8% retracement:

 -

Additionally and just as bearish is the fact that it is forming a bearish harmonic pattern.

 -
 
Posted by Relentless. on :
 
quote:
Originally posted by Relentless.:
Updated chart showing the initial reaction to the 61.8% retracement:

 -

Additionally and just as bearish is the fact that it is forming a bearish harmonic pattern.

 -

Says the guy who just lost 15 points shorting the USD/JPY... When will I learn that descending triangles and Ascending triangles are reversal patterns in currencies. I don't know why I can't get it through my head.. ugh
 
Posted by Relentless. on :
 
Kicking the ever loving sht out of myself right now.. I fn know better.
 
Posted by Happy Valley on :
 
quote:
Originally posted by Relentless.:
Hey HV, always love seeing your input.

I took an alternative approach in that I went from cash to "in market". I see an opportunity in that big moves are coming.

Positioned to take advantage of a slumping/crashing DJIA.

Still sitting in mostly cash but I plan on joining you with puts very soon. I'm hoping they can keep this market pumped up long enough to get through E's in some of the mega weight SPX and Nasdaq names (MSFT, AAPL, FB, GILD, AMZN, GOOGL etc.). Tutes love jamming these things into E's and they carry so much weight that it turns into a premium suck, theta killer with SPY and QQQ puts.

SPX Daily is closing in on the 200 MA. Wouldn't surprise me in the slightest if they take a crack at it, especially With MSFT, GOOGL and AMZN E's this week and AAPL next week.
 
Posted by CashCowMoo on :
 
Whats up Hidden Valley, you going to make some moves soon? Im out right now just following a few.
 
Posted by Happy Valley on :
 
http://finance.yahoo.com/news/monster-amazon-google-facebook-carrying-142500849. html
 
Posted by Peaser on :
 
I am thinking there will be blood... I pulled out of the big boards. Looking for a good entry in SLV and GLD in the coming months.
 
Posted by Peaser on :
 
Got any good social commerce stocks?
 
Posted by Happy Valley on :
 
I like your GLD and SLV idea, buying GG, NEM and GDX calls in December/January generally treats me well in the first Q.

Being patient with the indexes. Looking for one more pump to SPY $210 +\- possibly even new highs before loading TVIX size...SPY under 204 is a short with both hands jmo
 
Posted by IWISHIHAD on :
 
By Suzanne Barlyn and Ankit Ajmera

Wall Street's industry-funded watchdog is ramping up its scrutiny of high-frequency trading firms as efforts to manipulate U.S. markets through the technology grow more sophisticated, the regulator's chief said on Tuesday.

The Financial Industry Regulatory Authority will examine how well high-frequency trading firms are protecting their systems from unscrupulous traders who are trying to manipulate markets, according to a list of its 2016 examination priorities for Wall Street firms, published on Tuesday.

FINRA's heightened focus on controls in place at high-frequency trading firms coincides with the growing prevalence of a new and more complex form of spoofing, a type of manipulation that involves faking orders for a security to deceive the market by creating the illusion of demand, said Richard Ketchum, FINRA's chairman and chief executive, in an interview.

The regulator is observing more instances in which traders are using multiple firms to place those orders, Ketchum said. The strategy can make the conduct trickier to track.

Spoofing occurs when traders place orders in markets without intending to execute them. The traders immediately cancel the orders, but other market participants mistakenly believe the price of the security has moved.


In the newer, more sophisticated type of spoofing, the traders then use yet another firm to buy or sell the security at issue after they have successfully tricked the market, Ketchum said, which allows the traders to attain their target price.

The watchdog said it would also examine the "firm culture" at Wall Street brokerages.

FINRA is concerned about how brokerages take actions to promote fair and ethical treatment of customers and help mitigate conflicts of interest, the watchdog said in its "2016 examination of U.S. brokerages."

The regulator said it would mainly assess five indicators of a firm's culture and the role they play in the way brokerages conduct business.

The indicators include the handling of policy or control breaches and of departments or trading desks that might not conform to the corporate culture, and the role of senior executives in a firm's culture.

"We’re not about suggesting whether there’s a single pass-fail as to whether a firm has a certain culture," Ketchum said. "It’s whether they comply with FINRA rules."

To that end, the regulator wants to understand how each firm's culture affects compliance and risk management practices.

FINRA routinely examines the industry's more than 4,100 securities firms to gauge their compliance with securities industry rules.


-
 
Posted by IWISHIHAD on :
 
High Frequency Trading introduces a great deal of risk into the market, billionaire investor Mark Cuban said Monday on CNBC.

"The risk isn't so much about the small investor," he said. "The risk is all these different high-frequency traders playing a game with their algorithms, trying to trick each other, to get in front of each other to make that trade.

"And because we don't know all the algorithms, because we don't know the end factorial, all of the different ways they may interact and the negative consequences that occur as a result. That introduces a market risk. That market risk has an unquantifiable cost."


Read More › Cramer stops short of calling market 'rigged'


On CNBC's "Halftime Report," Cuban said that he didn't know what the solution was.

"But what I do know is that high-frequency trading does nothing to stimulate or support capital formation in markets," he said. "I do know that the idea of owning a share of stock in the company is supposed to be about ownership in that company.


Mark Cuban: No idea how bad HFT could be if something goes wrong Billionaire investor and entrepreneur Mark Cuban discusses the algorithms high frequency traders use, and the risks involved.


What is high-frequency trading?


"Maybe it comes down to something like giving companies the opportunity to say, 'You know what? If you're going to buy a share of our stock, we require you to hold it for a minute or a day or a week, whatever it may be because that's an expectation, a requirement for our shareholders. Because at the end of the day, owning a share of stock is supposed to be about owning equity in a company, and I think we've lost track of that, and that's a real problem."

Cuban has been a vocal critic of high-frequency trading. In April, he criticized HFT as problematic for the stock market.


Read More Get HFT genie back in the bottle: Mark Cuban


"There's so many problems with where the market is in today because the market doesn't know what business it's in," he said. "It literally is no longer in the business of providing capital for companies to grow, and that's a huge problem."

High-frequency trading made headlines over the weekend following a "60 Minutes" interview with Michael Lewis, author of "Flash Boys: A Wall Street Revolt," who said that the stock market was "rigged

-
 
Posted by IWISHIHAD on :
 
The irony of both of the articles I posted.

When was the last time the market or businesses involved in the market, had anything to do with what the market was set up to provide for investors and businesses?

Maybe 40 years ago.

Greed and entitlement sure changes a lot of things in this world today.

-
 
Posted by Peaser on :
 
China is removing the circuit breakers tonight. This could be interesting!
 
Posted by glassman on :
 
"The risk isn't so much about the small investor," he said. "The risk is all these different high-frequency traders playing a game with their algorithms, trying to trick each other, to get in front of each other to make that trade.

"And because we don't know all the algorithms, because we don't know the end factorial, all of the different ways they may interact and the negative consequences that occur as a result. That introduces a market risk. That market risk has an unquantifiable cost."


this what we were calling "painting the charts" ten years ago i stopped daytrading when i saw the dips not going deep enough and rises gettingcut off before they should. It took me longer to figure it out than it should have and w were all blaming the market makers. It was the beginning of the algorythm trades.
 


© 1997 - 2013 Allstocks.com. All rights reserved.

Powered by Infopop Corporation
UBB.classic™ 6.7.2