CalibratedConfidence's blog

Bravo again to Jim for his expert work in helping people make money, just not the people he claims, not his viewers, another P.T. Barnum Show folks.  Good thing this one hasn't shown he is running a business taking subsidies from the Conneticut government based on the number of employees he has, hat's off to you too Keith Mccullough.

...understand the national threat that is our fragmented and perverted equity market microstructure that is driven by such esoteric order-types such a Post No Preference Blind Limit Order created through the buddy system of exchange/order volume producer.

Presented with limit comment because the motive here is to inform you with accurate quickly instead of milking your time by making a slideshow or carrying out some long post telling you how to interpret the data.

The Analytics Group of IIROC performed a Trading Review and Analysis of High Frequency Trading on Canadian equity markets.  IIROC uses a methodology to identify user IDs exhibiting high order-to-trade ratios, or HOT User IDs, and covers the period from August 1, 2011 to October 31, 2011.

The paper studied the non-linear relationships between Italy sovereign risk as gauged by CDS and the liquidity levels in the secondary bond market, using Bid/Ask Spreads as the gauge for liquidity in an attempt to determine the viability of the ECB's OMT & LTRO interventions.

Today, the very orders that make HFT a beneficial trading strategy and one worth the massive capex, are controlled by the exchanges.  That's the difference between this form of "technological advancement" and those of the past, the direct ownership of the critical intersection between information processing and order execution.

Given the complexity of our system just to execute a trade, is it any wonder that CNBC has been on a push with Mila Kunis and Rachael Fox to bring back the seemingly low-brow retail investor who only gets into the market once his favorite TV actress says so?

Nat Gas kissed $4 just after 10:00 EST and then subsequently collapsed to $3.891 before rebounding all the way back.  Coupled with Fannie Mae, we're in an Efficient Market!  This time, the computers were a full 7 seconds ahead of the release, not the 400 ms we've been seeing.

This past week a near doubling of the amount to the ECB coincides with the Fed's non involvement with the direct bailout of European banks from $4,192 million to $8,343 million.

Market reform still has a ways to go but the turn around on special order types is welcomed and comes with a warning to the SEC to not sit back in front Brazzers for long as more work still needs to be done. 

Infotainment channels and slide-show CPM websites could easily mistake the data in the following charts as balance sheet stress, economic pressures, and financial industry health in Europe is improving.  To contrary, it's so bad that the vehicle used to transfer the worlds reserve currency to those sovereign regions reaching out for help that the FED is now hopelessly handing cash right over.

You know how we feel about special order-types and expert networks.  I'll save you the long-winded paragraph so you can keep selling AMZN.  Here is an HFT infographic

And now it's on us to mobilize and make sure at least one of us in each district contact our representatives and do what we can to inform them.  The longer this goes on, the more bad algo's will manipulate the system

The Securities Litigation and Consulting Group just released a report which highlights the rise in Apple's stock price coinciding with the issuance of debt products linked to Apple's stock price.

We all know by now, thanks to the SEC investigation into the May 6, 2010 Flash Crash that what the public is told upon the culmination of an investigation is not the unbridled true story but merely the story the regulator is legally allowed share.  Why is it that the American population expects prosecution in the wake of a movement driven by the US gov't, funded through the Federal Reserve, and carried out through Main Street by the Banks and their ominous leader of leaders, Linda Green?