Back in July 2012 [4], market participants watched in stunned silence as the latest indicator of the broken market, the "harmonic oscillator" algo, took control of three of the largest names in the Dow and proceeded to.... oscillate them. We recorded this hilarious market abnormality as follows [4].
IBM
[5]
KO
[6]
MCD
[7]
* * *
Over two years later, it is good to see our old friend is still right there and that SkyNet still reigns supreme, because as the following chart of CTRP, courtesy of Nanex [8], shows "new normal" algo-controlled stocks appear to have just two default modes: a relentless ramp higher (courtesy of a VWAP buyback programs or just momentum ignition), or a far more "nuanced" sinewave oscillation up and down in what only a Princeon economist could call "price discovery."
Should anyone care? Of course not: with stocks at record high, clearly there is no reason to be concerned about anything.
