Volume continues to be concentrated in just a few names.  Today, in a universe of over 5000 stocks in the U.S. equity market, only 4 stocks contributed 20% of the volume.  Citigroup (C), Bank of America (BAC), Fannie Mae (FNM) and Freddie Mac (FRE) traded a total of 2.041 billion shares.  Overall volume in the U.S equity market was only 10 billion shares. (more…)

I believe that it is extremely wise and helpful for all investors to ask questions about a very murky and little-understood style of trading, lately labeled HFT. Dark pools? Predatory? How so? Who plays? What’s the angle? We make no value judgement in general on investing styles, but we do ask questions when one group is catered to at the expense of other groups. We have heard our motives questioned more than we’d like to have, and questioned in personal attack-style language  from  slick ex-lawyer types. We won’t play that game. We have been taught that when you wrestle with (more…)