So today right on the market open a bunch of stocks started to trade very strangely…
Was it a liquidity issue? Broken Algos? Knight Capital Problems?
I don’t know.. I just know I had no edge trading… so I sat out for the most part and waited for things to get back to “normal”.
What if this is the new “normal”?
Then we have a terminator infested market ran by algos and HFTs.. slaughtering the last of the human day traders that are left.
At that point will they introduce a trader taxto combat them?
I don’t know, I do know that the average retail investor is still getting screwed though.
I guess that is OK, who am I going to extract profits from if I can’t compete with the algos?
NITE alert I got
Algos gone wild and the new normal
Anyways,
I am sure this is just a one day glitch and everything will get back to “normal” soon.
BUT, if this isn’t just a one day thing then it should be noted and traders will have to ADAPT to the new market environment in order to survive.
In order to adapt, you should be able to see what the algos are doing on the tape and adjust to the new changes.
Algos love you long time
I’ll just leave you with some of these “broken charts” from the open today.
Notice that the algos didn’t just affect ONE stock.. but 24 !
Look at the screwiness of the top 5m chart then look at the liquidity issues they had by using the tick chart.
If you think you can gain an edge with that, while properly managing your risk, then more power to you.
The day trader still isn’t dead due to algos.
I just opted to be in cash today till I had an edge.
UPDATE:
Straight from the NYSE, here are the 140 symbols that were BATSed http://bit.ly/QqFPq8 h/t @zerohedge
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