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Tuesday, May 11, 2010

Is the Market Dead?

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This past Thursday the DOW fell by around 1000 points within minutes. There is still no explanation as to what precipitated it, but once started there was a downdraft created as the automated trips of machine selling took over.

Where were the people?

According to Nathan A Martin, The Markets are Dead ...

The convulsions of the past week are simply after death reflexes. Thursday’s rout occurred when the selling volume triggered a stop in high frequency traders’ machines – there were no bids left and the market simply disappeared in a flash. What does this tell you? That the only participants in the market were the high frequency machines – they have displaced real people almost entirely.



Humph.



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