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TheSpaniard

Flash trading crash?

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Does anyone else feel like sometimes we get a crash in the markets but instead of going violently down like they did a month back we get a wild swing up? If people are betting stocks go higher and you get that wild swing down people loose money. If you are betting the markets are going down and we get a wild swing up people loose money.

 

I get the feeling that the bigger players with enough daily volume can cause these swings to be greater once they get a sniff and then of course benefit from that.

 

I just keep coming back to thinking that the markets are like a rigged roulette table...Let you make some money here and there, good enough to keep putting more money in and then bam, clean house....

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Well you can see the big boys move in and out, if you look back at the flash crash in May you can see alot of money remaining short, we just moved up 500 points in 4 days on crap low volumewink.gif

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View PostWell you can see the big boys move in and out, if you look back at the flash crash in May you can see alot of money remaining short, we just moved up 500 points in 4 days on crap low volumewink.gif

 

 

Summer fun!

 

You should see it from my perspective.biggrin.gif

 

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About flash and algos:

 

We're in an age where everybody is using them to access the market.

 

All it takes is a clerk with a large agency order and at the end of a dull day it'll look like something funky.

That will trigger pairs trades to react vs the volatility as well as stop limit orders.

 

I'm all for per stock circuit breakers - keeps mutss from mushing the picture.

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