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Post by jeffolie on May 12, 2011 12:45:42 GMT -6
If Martin Armstrong, Elliot Wave, Fibinnaci numerology based financial 'golden rules' do exist, then it is because these numerology based financial 'golden rules' are now part of the High frequency trading and algorithmic trading accounts that exacerbated price movements. Oil fell a lot because of algorithmic trading = 50%, crowd psychology? Does a crowd of algorithms mean a crowd of traders? Yes...inhuman These computer trading systems are little different than those that accelerated the 1987 'program trading' crash...except faster and with more money from big trading arms of JP Morgan, BoA, Goldman Sach etc that resulted in perfect trading in the last quarter. Algorithms, perfect trading quarters mean more 'flash crashes' as TRADING profits drive these markets. ============================================== "Computers don't care. Momentum just increases ....Thursday's rout appears to have been more a product of the wisdom of crowd computing than of widespread human panic. "We believe the magnitude of the correction appears in large part to have been exacerbated by algorithmic traders unwinding positions," Credit Suisse analysts wrote in a report. High frequency trading and algorithmic trading accounts for about half of all the volume in oil markets....Computers and Oil's Drop " bonddad.blogspot.com/2011/05/com ... -drop.html
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Post by jeffolie on May 13, 2011 7:22:13 GMT -6
Exchanges love algorithms and traders...they drive the profits for transactions and heavily trading is very profitable for the exchanges
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