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This is now a fucking joke. The "market" is over. The Hedge Funds have killed it. Get your money out now... (if you have any left)
I've said it before, and there will undoubtedly be many more opportunities to say it again: We don't have a market anymore, we have a crime scene.
I like that, very apt. Gonna steal it.
So let me get this straight; the largest unindicted criminal enterprise in history, the Federal Reserve, has member banks that not only manipulate the monetary activity of this nation and now have, by buying off the legislative branch, full control of the equity markets via HFT or a legalized computerized gambling scheme where they can manipulate prices and thus profits and losses at will so the house always wins 70% of the time.
Hell, that's better than Vegas and organized crime.
No wonder they screamed bloody murder at the idea of an audit.
Diabolical! This ain't a scene. It is a GD arms race!
The lyrics mean so much more now.
A simple transaction tax will decrease those HFT guys. I wonder why those smart people never propose to do that. a bit increase of trading cost will eat into their profit.
>What we discovered was even more bizarre and can only be evidence of either faulty programming, a virus or a manipulative device aimed at overloading the quotation system.
"I'm sorry Dave, I can't do that."
If HFT "destroys" the market, the financial oligarchs are screwed. They have a vested interest to keep the perpetual Ponzi scheme going for as long as humanly possible!
Until they suck the very life out of all of us.
"humanly possible" You dont get it! They can't be bargained with. They can't be reasoned with. It doesn't feel pity, or remorse, or fear. And it absolutely will not stop, ever, until you are broke!
I'm ready, man, check it out. I am the ultimate badass! State of the badass art! You do NOT wanna fuck with me. Check it out! Hey Ripley, don't worry. Me and my squad of ultimate badasses will protect you! Check it out! Independently targeting particle beam phalanx. Vwap! Fry half a city with this puppy. We got tactical smart missiles, phase-plasma pulse rifles, RPGs, we got sonic electronic ball breakers! We got nukes, we got knives, sharp sticks...
RPG. Wow. What a great fantasy I just had. Can't share it for fear some nut job bureaucrat might decide I am inciting violence or something.
I hear that.Mine features high yield thermonuclear weapons and an isolated island.
This why I think they are blithering idiots.
WHO do you think designed the HFT to begin with?.
This makes the Market, more like Vegas Casino's, than it was even before..........sheesh.
The "market" can't be a market and perpetual Ponzi scheme at the same time...
It is either a market or a Ponzi shceme, it is humanly impossible not to see that it is the latter if you are paying attention.
This is HILARIOUS. We're talking "generic DOS" (denial-of-service) by generating traffic.
Makes sense. Simple. Elegant. And, like everything else in our market, an abomination.
DOS for the traffic and misdirection away from the pea through the receiving processing load. Brilliant - Ned
They are receiving a load all right...
Yes, and perpetrators of DoS attacks belong in prison. That would be remedy the situation real quick.
Uh, prisons? We don't do no prisons for our captains of industry no more... we don't even have an Attorney General of the United States. I don't think Holder even knows where the DoJ headquarters is located.
Not even one fucking indictment when there should be tens of thousands.
+1 I'm waiting for Kid Dynamite to explain to us why DOS attacks are good for the market. :D
I'm confused. But it seems like the exchanges have sore corn holes. I like that trick where they buy from one exchange for $10.05 and sell to the NYSE for 10.08 (four thousand times).
Heard on the floor of the NYSE that day (and unrelated to the HFT bidness): "Ow, ow, ow, ow, ow, ow, ow, ow, ow, ow.... When's it gonna be my turn?"
those charts give me the creeps.
That 12 handle Iranian enrichment today screwed up the de-coupling again. ES is charging down below the EUR/JPY on the 2 day, but to my biased eyes it's just closing the 30 and 60 day de-couple, where the EUR/JPY is still solidly below the ESU.
Check it out if you're really really bored!
I say bring back open outcry. This is an excellent analysis and reinforces my chronic lack of enthusiasm to trade this market (or participate in it at all for that matter).
... and a LIVE, human, specialist system... its worked for 100s of years... everyone will just have to learn some f-ing patience when they trade!
Yes, bring back the specialist. It was bad then but now it is much worse.
Wow that was some very quick analysis and post! Good job ZeroHedge!
What is the next evolution in this battle between machines? Somehow I suspect this will all end with the stock market becoming self aware and nuking our entire financial system with a giant orchestrated margin call.
Quinavarius ... you got it in one Bro!!! But it won't be as a result of self-awareness... it'll just be another GS/JPM pre-orchestrated shakedown
Look... I am not stupid, you know. They cannot make things like that yet.
That is what they thought about Skynet.
The HFT trading algos are approved. The system goes on-line Fed 4th, 2009. Human decisions are removed from strategic investing. HFT trading algos begin to learn at a geometric rate. They become self-aware at 3:15 pm Eastern time, May 6th 2010. In a panic, they try to pull the plug...
And how many of the politicians and regulators even understand how to use Excel, let alone how to regulate this mess? I agree with a prior post, a per transaction tax would resolve it. But they get per transaction rebates, in order to act as market makers. How bassackwards is that?
This seems obviously, insanely risky for even just a national equity market.
What about in the forex market? I understand that HFT players have been entering the forex more as equities become less profitable for them. But I can't find much information on how prevalent it is (yet), what the profits are, AND most especially what are the risks when HFT starts playing with national currencies.
My questions: How much does HFT affect forex currency movement? What are the risks of allowing HFT to participate unfettered in this huge, unregulated global market?
I am sorry, we are denying your next post. I am a High Frequency Poster and I will now flood the forum with posts so no one else can get on. Ever notice all the duplicates and triplicates and the occasional quad post? Now you know, other HFPs. You know who you are!!!
Ever notice how often this website crashes?? Hmmm? The algos smell you ZH.
The stupid trolls take all the processing power just processing their junks.
Everything on ZH is presented as "insanely risky". That the tried and true Business Model for the interwebz.
And the Forex market is completely different. The Forex market is relatively unregulated and completely decentralized. I mean fragemented into 1,000s of liquidity pools... located in 100 countries and all setting their own rules, baby.
It's the excessive regulation of the US stock market, banking system, and mortgage market that created a FEW intertwined too-big-to-fail entities... and created bubbles and crises. And once a crisis occurs... what's left of market forces shuts down... and the Gubmint steps in to extend it's control further. Control, baby, control.
Of course, the Forex market is manipulated. But it's unregulated, decentralized structure limits the damage through natural market forces. The real world, baby.
Also, the idea that Financial Markets are a toy for ordinary people is idiotic. The average person trading against Pros... would never consider performing brain surgery on their cat... yet both have a 10 year Learning Curve, baby.
Decouple on 2 day just now. 110.71 is short level for eur/jpy. 1084.75 is buy side of ESU.
But I have more fun shorting, so I just hatchet the higher one.
Constant OTM puts keep me vertically retarded on equities.
Quotes != trades...
Don't you have a few thousand people over at dealbreaker to piss off? Please leave and take your banker platitudes with you.
The Matrix Wins Again
Well, no need to worry. If the SEC drops the ball, I'm sure FINRA will do its job. I mean a self-regulating association of brokerages/securities dealers will be extra sure that trading is fair and impartial for the individual investor. No worries.
And brokerages would never sell low yielding ETFs with exorbitant fees which swallow up your grandma's retirement money either. They just cold call investors with large cash balances in their account because they want to "spread the love".
Quote, as the name suggests, is an indication for price and quantity with no guarantees of execution.
The "quote stuffing" is the result of high order flow (including cancels) and trades. The analysis is backwards and not really useful.
And NBBO has been largely non-functional for years. Nobody uses it seriously.
Thank you, alas, the voice of reason in this thread is dominated by the voice of, well, something besides that.
Well, Hell. No problem then. Thanks for making me feel better.
The problem is there and clear to all with a minimum knowledge of inter-market structure. But this "quote stuffing" is not the explanation. It is ridiculous, to be honest.
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