Comments on: Five Things You Should Read About High Frequency Trading http://www.caleinthekeys.com/2009/07/five-things-you-should-read-about-high-frequency-trading/?utm_source=rss&utm_medium=rss&utm_campaign=five-things-you-should-read-about-high-frequency-trading Portfolio manager Cale Smith's riffs on investing, spoke funds, and Islamorada in the Florida Keys. Fri, 30 Jul 2010 21:08:38 -0500 hourly 1 http://wordpress.org/?v=3.0.1 By: Kirk Kinder http://www.caleinthekeys.com/2009/07/five-things-you-should-read-about-high-frequency-trading/comment-page-1/#comment-94 Kirk Kinder Fri, 24 Jul 2009 17:20:28 +0000 http://www.caleinthekeys.com/?p=1140#comment-94 When half the volume is derived by this practice, it just guarantees more volatility. If the buyers are out, expect higher rises. Conversely, we will see bigger downward moves when companies miss estimates. Ignore the short term or expect to go crazy. When half the volume is derived by this practice, it just guarantees more volatility. If the buyers are out, expect higher rises. Conversely, we will see bigger downward moves when companies miss estimates.

Ignore the short term or expect to go crazy.

]]> By: Cale http://www.caleinthekeys.com/2009/07/five-things-you-should-read-about-high-frequency-trading/comment-page-1/#comment-93 Cale Fri, 24 Jul 2009 04:10:23 +0000 http://www.caleinthekeys.com/?p=1140#comment-93 Irony is that Wall Street doesn't really want free markets - it wants markets that it controls. Folks in DC have always had a tough time telling the difference. And looks like the NYTimes is now weighing in on High Frequency Trading, too: http://tinyurl.com/mmhx8w Irony is that Wall Street doesn’t really want free markets – it wants markets that it controls. Folks in DC have always had a tough time telling the difference. And looks like the NYTimes is now weighing in on High Frequency Trading, too: http://tinyurl.com/mmhx8w

]]> By: Kirk Kinder http://www.caleinthekeys.com/2009/07/five-things-you-should-read-about-high-frequency-trading/comment-page-1/#comment-92 Kirk Kinder Fri, 24 Jul 2009 01:03:44 +0000 http://www.caleinthekeys.com/?p=1140#comment-92 Just another reason that Goldman is the devil. Now, I am not an anti-capitalist, quite the contrary. I am a libertarian, free market proponent. But, this company that is hailed as the truest capitalists in the world and nothing more than a glamoured middle man. They are corporatists who are only alive due to government aid, which came through AIG. Plus, the government stepped in after Lehman and Bears died. Of course, Goldman had a huge short on those companies. Classy. And, now it is becoming apparent they are front-running institutional trades. Many of these institutions are their clients. What a way to treat clients. I hope the blogosphere keeps on them and this practice. Much of this rally could be driven by this behavior. What happens when they decide to reverse course? To say this is noise is certainly an understatement. Just another reason that Goldman is the devil. Now, I am not an anti-capitalist, quite the contrary. I am a libertarian, free market proponent. But, this company that is hailed as the truest capitalists in the world and nothing more than a glamoured middle man. They are corporatists who are only alive due to government aid, which came through AIG. Plus, the government stepped in after Lehman and Bears died. Of course, Goldman had a huge short on those companies. Classy. And, now it is becoming apparent they are front-running institutional trades. Many of these institutions are their clients. What a way to treat clients.

I hope the blogosphere keeps on them and this practice. Much of this rally could be driven by this behavior. What happens when they decide to reverse course? To say this is noise is certainly an understatement.

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