Themis Trading is an independent, no-conflict, institutional agency brokerage firm specializing in equities. The purpose of our blog is for a discussion of market structure issues as well as general market commentary.
Please note that third-party posts do not reflect the views of the Company and have not been reviewed by the Company for completeness or accuracy.
MICHAEL LEWIS says:
“The principals of Themis Trading, have done more than anyone to explain and publicize the predation in the new stock market. They deserve more lines in this book than they receive but have written their own book on the subject, Broken Markets.”
“When the last history of high-frequency trading is written, Hunsader and Themis Trading deserve a prominent place in it.”
-MICHAEL LEWIS, Flash Boys
BOSTON GLOBE: "Did you read something for Flash Boys you would recommend?"
LEWIS: "Scott Patterson’s Dark Pools, which overlaps with my own book some. What he does really well is tell the early history of automated electronic trading. I’d also recommend Broken Markets and the 1923 novel Reminiscences of a Stock Operator by Edwin Lefèvre."
-The Boston Globe, "Bibliophiles: Best-selling author Michael Lewis", March 21, 2015
I like 90% up days. It makes me want to buy dips.
The technical numbers and jargon (RSI, ADV/DECL, BREADTH, etc.) really do nothing more than help us fit pieces to the new puzzle. In lay terms, the market was so far below its moving averages, that the current market backdrop is simply that the long term equity stock holders are done with the fear selling. Does that mean we go straight up? Ha. I wish! No, we will enter a period now in which we have to tread carefully, buy dips and not breakouts, and do everything we can to not rush up the livingroom stairs so that the “Home Alone” kid can hit us with the paint can.
The longer we can move upwards in price, or at a minimum not give it all back, the more short covering we will see in the short term. I am hoping that short covering makes the market move up 15% from the lows (we are kind of there), and that will draw in some long traders (maybe this happens over the next 3 or 4 trading days?), and ultimately even some institutional vanilla money (is there any left?). I think this can be a three week rally. But I do not want to be buying when the last vanilla money is back in. And I hope that vanilla entry money does not coincide with the April economic numbers, where we may be brought back to reality.
I hate being the last guy standing in musical chairs. And I am tired of the paint can.