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D&D Note

D&D Note (3-23-2012) ~ More High Frequency Trading Flash Crashes

D&D Note (3-23-2012)

BATS a electronic trading exchange IPO’d today – and it was a mess, a huge mess.

An erroneous trade via BATS in Apple caused the circuit breakers to turn on when Apple saw a mini flash crash and trading had to be halted for a few minutes.

On top of that the actual IPO shares of BATS also saw a flash crash opening at $15 and then falling to $.0002 yeah thats not even a penny.

Trading has been halted in BATS and won’t resume, while they investigate what went wrong – i.e. what caused the technological problem… and it wasn’t just a fat finger. And now the latest is BATS has actually withdrawn their IPO all together.

This all comes at the same time that the SEC is investigating the high frequency traders to see if the are receiving an unfair advantage in knowing the bid and ask prices along with where the buyers and sellers are before anyone else can… not sure why the SEC is investigating “wether or not” they are receiving an advantage – because clearly the high frequency traders are receiving an unfair advantage.

The market now wants to head lower but the “window dressing” being done by investment firms at quarter end is holding the S&P 500 near 1400.

Come April the window dressing will be gone and we will finally get the long due correction.

Gold rallied today above $1660 an ounce which is a key fib level.

KB Homes fell big today after a sharp drop in new orders.

WTI rose $1.72 to $107.08 a barrel.

The 10 year yield is at 2.28% which is still at a yield the will result in a loss of money when taking in the inflation rate and taxes, why you would want to buy bonds now is beyond me – if you need fixed “safe” income I would recommend high yield corporate bonds.

Uncle Sam takes enough of our money as it is – don’t lend the Gov money when you won’t even see a return and rather a loss.


About ddinvestments

Trading Partner for D&D Investments


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