High-speed computerized trading, called high-frequency trading, is exacerbating the market's big swings. "The moves up and down are because of headlines. The volatility is so high I have no doubt it's due to role of high-frequency trading and algorithms that are exasperating price moves in the market, " says Sal Arnuk of Themis Trading. "Where see 3% and 5% moves — the moves would have been half that without high-frequency trading," Arnuk says. "You'd still have the moves up and down — that's the natural flow of the markets, but because of the outsized role of (exchange traded funds) and the increasing role of high frequency trading and how they prey on (investors), these moves become more outsized." Gold, considered a safe haven in troubled times, continued climbing to new highs, surging through $1,800 an ounce before closing at about $1,794. U.S. Treasuries also rallied, pushing yields down to 2.12%, near Tuesday's record 2.03% low.
Access Investments-Building Awareness - European Union-ROMANIA
Thursday, August 11, 2011
High-speed computerized trading, called high-frequency trading, is exacerbating the market's big swings. "The moves up and down are because of headlines. The volatility is so high I have no doubt it's due to role of high-frequency trading and algorithms that are exasperating price moves in the market, " says Sal Arnuk of Themis Trading. "Where see 3% and 5% moves — the moves would have been half that without high-frequency trading," Arnuk says. "You'd still have the moves up and down — that's the natural flow of the markets, but because of the outsized role of (exchange traded funds) and the increasing role of high frequency trading and how they prey on (investors), these moves become more outsized." Gold, considered a safe haven in troubled times, continued climbing to new highs, surging through $1,800 an ounce before closing at about $1,794. U.S. Treasuries also rallied, pushing yields down to 2.12%, near Tuesday's record 2.03% low.
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Maybe if S&P should need to support millions of people who wants to eat, sleep in bed, get cars, educate its sons and everything all we wants, would be downgraded to Z Minus....Is not so easy cut, cut, cut, increase taxes and grow the economy.....At least everyone knows what to do, but in 1000 years countries had some problems...not everyone have opportunities, luck and money to speed up economy.... Rating agencies thinks are over the world, and should be more intelligent, because warning investors are destroying countries, markets and freezeing economies.... If media says that earnings are better than a year ago, that maybe could be a temporaly slowdown, etc, investors would be better and their accounts to.
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