i'm working on couple ideas that based on real time streaming data(same crap-market neutral, stocks vs ETF's etc) and it's just sad to see how wide the spreads are now on stocks. i'm talking about 6% on the middle of the day between bid and ask on stocks with avg. volume of 50K shares.i'm talking about 10% or more and no trading whatsoever in at least first 5-10 min of trading. it's get a bit better with greater volume,but still..pathetic.IBB-pretty damn liquid, averaging 1.5-2M shares-very common to see 0.5% spread during trading session..keep in mind that 'they'(GS probably included) are now pushing the rules that will make those spreads even bigger. why? cause that's the only thing that left-using any form of technological and regulatory advantage to buy at bid and sell at ask. for all those,who are thinking-whoa! i can do that too(buy at bid and sell at ask with instant 6% gain(see example above)-don't even try. it's their soil and they will f** you up over couple pennies,if you try to steal from them. back to those ideas that i'm working on-system generates fantastic and consistent profits,based on assumption that i can get into the trade at mid point(if i can buy at bid and sell at ask-f***... i'm talking about 10s of thousands of $ each and every day). but when you change it to buy at ask and sell at bid + commissions-ooops..no profits.. problem is-judging by what i see-realistically- i have a very slim chance to get into a trade even at mid point(specially on high priced stocks with relatively wide spreads). end of story theme song for GS: https://www.youtube.com/watch?v=q-Aoy5vCUHw title said it all.they better get use to it
I think from the end of 2007, the TARP and quantitative easing was and still is all about bailing out and propping up a banking system that was near collapse with runs on the banks. I think many US banks are still hiding a heavy load of bad loans on their books; So, the easing goes on. I have not seen any of the fed's 4.4 trillion dollar program used for shovel ready projects to create jobs for the unemployed as was claimed in the beginning. Congress has done nothing to reinstate Glass-Steagall; So, our banking system is left to have a repeat some years down the road. Maybe electing more tea party, libertarians, and independents could help solve some of these problems but would probably create new and different problems.
+1 True, although there was at least one shovel ready project to create jobs for the potentially unemployed - http://en.wikipedia.org/wiki/AIG_bonus_payments_controversy A solution is definitely coming - the trick is figuring out when. (I hope the middle class has there shovels ready.) The FED can only pee into the wind for so long before the wind pees back!
It all goes back to this. In the 90s the SEC was pushing for integrated markets. As the market got more fair trading, became super popular. Everybody was a trader and some us even became full time traders. It was the conversation on the golf course and while drinking with friends. Then some of the established trading firms got smoked by internet stocks and they stepped away. The Nyse started to monkey around with its rules. (and then got bought out) Since that time wall street spent the next decade buying off the sec and politicians and buying up exchanges and fracturing the markets so they could create structural edges. As the market got fractured and the market itself less fair, the public stepped away. It will be interesting to see how this resolves. Unfortunately I do not see any public figures saying we need to integrate the market to make it fair for investors.
exactly... there was an article about an old partner at a big wall street firm (when they were still partnerships) speaking of long term greedy.
vote out everyone with a D or an R next to their name and you vote out the machine,that's why there is never a non D or R left after primary to vote for
Yep, that is a tall mountain to climb. A change will require some support of the 49% who pay no federal income tax. I have noticed that even the R camp is now trying to win-over some support from the 49% group but that is like trying to get water to flow uphill.