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
Six,and Being Long, and Market Psychology.
Well, a few weeks ago, it was March 6th. The S&P hit 666, and the dow had gone below 6,666 as well. My odometer on my Silverado hit 36,666; I ususally don’t keep cars that long. My wife and I got into 6 fights in one day. To top it all off, I ordered an egg and cheese on a roll from the local luncheonette and was charged $6.
Six. I hate Six. And I hate round convenient numbers.
Fast forward to today. At yesterday’s close we had risen 25% off of 666. 25% is a nice convenient number. The market closed impressively strong. I have been bearish the last two days and wrong in being so. And I am still bearish. Over 70% of the S&P500 stocks closed above their 50 day moving average. When this number gets close to 80%, I will not be able to contain my despair. I will feel really bearish then.
Markets, especially during extremes, are best predicted by understanding mob psychology. The mobs loved CSCO at 70 (remember that BusinessWeek cover?). The mobs predicted oil at $200, when it hit $147. The mobs predicted oil at $25 when it fell through $40. I would not bet with the mob during extremes, but rather I would stay cautiously away from what they are doing. Keep cool all. I think the S&P could go to 850 still in the next week, but it can do so without me.