The three HFT horsemen are C, BAC and CIT.  These three stocks traded 860 million shares today which is 10% of all US Equity volume.  Think about that – 3 stocks in a universe of over 5000 U.S. stocks represented 10% of the volume.  How could this be?  Look at the intraday chart of all three of these stocks and you will see a something in common: an early morning move followed by a flatline with a very tight range (around .05).  Meanwhile, while these stocks were flatlining the market was heading higher.  The S&P 500 gained around 10 points (more…)

My partners frequently poke fun at me (ok there is a long line of folks doing this…), specifically for thinking too deeply about a topic, and expressing an idea with too much detail. I would like to get real simple here. High Frequency Trading is  proprietary computer trading with the goal of collecting rebates, and/or detecting real order flow (ie. institutional flow) and frontrunning it and making pennies. What bothers me? Two things: First, whether the market is trading at a 16 P/E,  or a 22 P/E, or a 30P/E… this is decided by 30% of the volume in the (more…)

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