And financial officials are only reinforcing this behavior, by getting the high frequency traders out of their losses via busted trades.
Just hit the letter "B" instead of "M" (its only an N away) and hey here we go again. It was AMAZING to watch the CNBC ticker on the DOW crash right in front of your own eyes. You didn't know when it was going to stop.
70%+ of the volume is big money using algo's. It WILL happen again unless the gov't puts the kobosh on this situation with all of the algos in the business which I doubt they can do effectively.
NO shit ! I'll take 10 yrs of this. Nice to see those trading strategies based on "Fantasy Island" getting destroyed. imho
It's silly to say that the busted trades are a bailout for HFT. I'm sure there were many HFT winners as well as losers. The long term investor with a stop loss are the ones who got killed and needed the bailout.
Also, why shouldn't the Dow drop 1000 points on Monday? Why not have a market consisting of a bunch of computers looking at each other? In the debt driven economy there is almost no such thing as fundamentals.
Bailout for HFT doesn't make sense. What if those guys were trying to collect rebates at 60% below the market. They turn around, get pennies on trades, only to be net short all of a sudden? How does that even work?