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Do High Frequency Algos Dream Of Electronic Corn?
Some late night observations courtesy of our liquidity providing overlords: Sky Net has morphed from "adding liquidity" in FNM, to Citi, to Amazon, to Intel, and following a massively overcrowded computerized shindig where every outfit's two bit amateur algo has crashed the party, is now actively managing the price of corn. Behold high frequency trading in September corn futures. But don't call it churning - the robots are. adding. liquidity. When JPM decides to add some computerized luvin' to PM fixings, look for the Hurst exponent in gold to go from 0.5 to around 666, as gold microvolatility makes widows and orphans out of the families of precious metals traders.
h/t Sam
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we really are at their mercy, aren't we...
to heck with zero-hedge, i think i'll go do something useful for a change... like write a letter to my senator.
Nogger has been noticing alot of vol in the commodities in the last few days, as well.
http://nogger-noggersblog.blogspot.com/
a hilarious grains blog with some good insights
I bet none of you traders have followed a tight algo bid/offer spread, as it got tighter bought in at the price broke out on the updside huh?.
i got no prob with the machines...they neutralize all the medium/small borgerkae firms. but that's it...oh yeah they create one week market correction in 10mins. you gotta respect that
A better question: Do HFT algos directly lead to starvation in the third world?
i bet they do......
So who cares? That's why we call them "third world." The dinks, darkies and dagoes either pony up their oil and pineapples for our IOUs or we blast 'em back to the stone age and let the IMF strangle any survivors.
First World: USA
Second World: Foreigners with nukes
Thrid World: Foreigners without nukes
It's the Second World that bugs me. Russia and China (foreigners with nukes) have formed the Shanghai Cooperation Organization and there ain't jack s**t we can do about it.
Even Lindsay Lohan had to go to jail eventually and pretty soon we'll be brewing vodka for the Ruskies and pulling Chinese tourists around in rickshaws.
I wonder what Sean Young is dreaming right now??? (Attempts to roar like the MGM lion twice.)
she's dreaming of riding the white pony.
Does BP stand behind Hayward
Yes - with knives
http://noir.bloomberg.com/apps/news?pid=20601087&sid=abSxMFbnWSJs&pos=2
Lies Lies and more lies until the truth must come out
See Ya baby - like I said. Corporatism is a den of thieves wearing nice $500 suits hiding sharp objects.
At least he gets his "life back" lucky fuck
FRONT RUNNER
http://williambanzai7.blogspot.com/2010/05/front-runner.html
That is just brilliantly rich writing. From headliner to tail-liner. *hat tip*
Question is, what do we dream of, Collective Heap?
ORI
http://aadivaahan.wordpress.com
Check out pork bellies.
Nice volume. Must be the GentleBreeze Algo.
Gentlemen, this is why you buy prime agricultural land near abundant fresh water, not gold.
Easier said than done. If you're just getting started, good luck with that. The stampede has been ongoing for many years...
True to some extent.
But in certain areas, the ecological destruction that is industrial agriculture has created much "marginal" land, but that actually is highly-productive, excellent soil.
As example, you couldn't pay me to buy land in, say, most of Iowa. But in parts of extended Appalachia, good land that is proximate to 25% of the world's freshwater (at a larger scale), with barns, etc. is still relatively cheap. Land's an inherently local thing, a statement that I'm sure is no surprise to any here. You just need to know where to look.
Much depends on how "subsistence" one wants to go...
But the wealth of the future is most certainly land. As it always was, it will again be.
EDIT - out west as well, though that presents a different pattern of issues to be concerned with!
. . .like the "tic tac toe" skypainting? *nods*
http://www.youtube.com/watch?v=eEFITGpXwZk&NR=1&feature=fvwp
(WARNING: turn down your speaker volume, good / short tutorial to the agenda)
Hah, not what I expected!
Had to listen on mute. I assume the narration provided the tutorial as to why NATO is dousing us?
Tyler,
Superb!
DavidC
Of course you have to wonder how many HFT rules engines are out there, that ended up generating this sequence of prices.
I wonder what Goldman Sachs does when it genuinely wants to short commodity futures, when you have this kind of bullshit going on now.
Instead of Rick Deckard running through the streets of a futuristic LA, the headline gives me visions of him running through a field of corn. Does corn have blades or leaves? He expands his business into "retiring" market androids, eerr, algos.
Nice reference to one of my all time favorites.
Nice Blade Runner/Philip K. Dick reference Tyler. :)