Friday, October 1, 2010

This market and the 'Flash Crash' report

So the word is "trading algorithms" caused the crash. More like the people behind the trading algorithms caused the crash. So what are they going to do about it, because what I find more troubling and sinister is the fact that I'm sure they do this sort of thing intentionally, every day on a smaller scale.

All this talk about low volume days not being good days, as it shows lack of conviction. Well notice those are the days we go up because those are the days the computers are taking off. Hint, hint. This program traders are preying on your fears, so they tend to make their big bets to the downside.

We posed the question a while back and the answer was predictable, "Is it market manipulation to buy or sell a security/option to affect movement versus to take part in the movement"? Put another way should it be considered manipulation to sell a gazzillion shares of a stock just so it goes down along with the derivatives, versus selling a security/option because you think it's going down.

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The Vix

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Where we rant and rave about the market and of course give our opinions on stocks we love or hate. We're not advisors and urge you to conduct your own due diligence.

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