It's About Liberty: A Conservative Forum

Topics => Economy => Topic started by: charlesoakwood on May 12, 2012, 04:16:58 PM

Title: Stock Market Quote Insanity
Post by: charlesoakwood on May 12, 2012, 04:16:58 PM

 New Level of Quote Insanity (http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05/20120511.eGOOG_.09.54.34.900_25ms.0.gif)

The following graphic neatly captures it. It shows the 15 minute average percentage of quotes considered excessive each minute (over 500 quotes per second per stock) between January 2010 and 11-May-2012 (plotted as thick red line).

Title: Re: Stock Market Quote Insanity
Post by: charlesoakwood on May 12, 2012, 05:27:31 PM

 Zero is piling on today (http://www.zerohedge.com/news/double-or-nothing-how-wall-street-destroying-itself)

As Nassim Taleb described in The Black Swan these kinds of trades — betting large amounts for small frequent profits — is extremely fragile because eventually...

 

Title: Re: Stock Market Quote Insanity
Post by: Libertas on May 13, 2012, 06:34:47 PM

All the big whales scooping up the plankton...where'd all the plankton go?  Oh hey, what happened to MS?!

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