This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

High Frequency Traders Drive Markets: Dave's Daily



This is "the short-term memory market" and may be a suitable alternative headline. But, HFTs (High Frequency Traders) have programmed their HAL 9000s to search for terms like "Greece" and "approved" to launch buy programs. And, yes, there was some news regarding both items late in the trading day. Nevertheless, there will be more votes ahead for any deal which will come with accompanied tension.

Forgotten was early in the day news that continues to be poor. There was weak economic data from China and Europe overnight which also weighed on markets in the U.S. Jobless Claims missed and came in higher while Home Sales were still lower. News from White House negotiations over the budget disappointed as Congressman Cantor walked out of talks wanting the president to come to the table.

Wednesday's Fed report showed Fed Chief Bernanke mystified over the lack of positive results from his policies. If he isn't confident, why should we be? In another coordinated interventionist action, the U.S. ordered 30M barrels of oil from the U.S. Strategic Reserve released to supposedly fix supply shortages from the Libyan oil facilities we're bombing. But, really, it's a political move and no, you can't make this stuff up.

Given short-term memories the machines only respond to the latest news and not the totality of bad news. Therefore, markets rallied sharply off their lows with the NASDAQ closing green on the day while the DJIA made up over 150 points to close down .50%.  Color the markets messy.

After the close both Oracle (ORCL - Get Report) and Micron (MU - Get Report) missed badly on their reports and both stocks were sold hard.

Volume was very heavy especially on the last hour short-squeeze ramp on news from Europe. Breadth per the WSJ was still mixed to negative.

  

You can follow our pithy comments on twitter and join the conversation with me on facebook.

Continue to U.S. Sector, Stocks & Bond ETFs

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SMH $56.12 0.48%
USL $27.04 -0.26%
XLF $24.16 -0.27%
XLI $56.16 -0.51%
BAC $15.58 0.03%

Markets

DOW 17,962.73 -72.20 -0.40%
S&P 500 2,101.03 +0.63 0.03%
NASDAQ 5,018.9010 +24.2990 0.49%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs