This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Markets Whiplashed by HFT: Dave's Daily

Stocks in this article: EWI EWP IEV FXE EFA GLD EPI

The ubiquitous 2:15 PM Buy Program Express was launched on time by HFTs. This started a rally like the wave a crowd would start at a football stadium. It ebbed for a time. But, in the last 20 minutes of trading an HFT short-squeeze from hell occurred. The change in conditions was so abrupt headline writers couldn't keep up.

The stimulant was news that Italy is rumored to be on bended knee to China asking for money. China would have to average down to protect whatever investments it already has in the euro zone. The algos must have this kind of stuff programmed in their HAL 9000s. Greece is all but certain to default and China may not care if they do other than the resulting contagion. Then there's the possible downgrade by Moody's of French banks but that didn't bother the algos late in the day.

The euro zone itself is in shambles politically prompting Luxembourg's Jean-Claude Junker to say: "We all know what to do; we just don't know how to get reelected after we've done it."  That about sums it up doesn't it?

It's ironic to see Obama push a jobs bill today while Bank of America (BAC) was shedding 30K jobs and perhaps more. In the meantime, BAC's strategist Mary Ann Bartels doesn't see anything bullish suggesting a 50% chance the S&P could drop 21%. Maybe she's depressed given her work environment.

Gold fell sharply Monday continuing its recent slide; the dollar, higher early, fell with hopes from a China rescue in the euro zone; bonds, also higher early, fell with the late day stock market rally; and, commodities overall were mixed.

Volume remained elevated but breadth per the WSJ was mixed overall.

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs