Is the Federal Reserve becoming concerned about margin debt, especially relating to HFTs? Last week I referenced a report stating for the first time in December the Fed questioned its 21 primary dealers whether or not they extend credit to HFTs. Approximately two thirds answered...
What will happen today? China suspended its circuit breaker. Reuters reported China is also considering allowing the yuan to quickly fall as much as 10%-15% at the same time backing tighter capital controls. The decimation in oil is continuing and equity markets are roiled. AND...
In about a month stop loss and GTC limit orders will no longer be considered good orders for the typical investor. The reason—to reduce the odds of “stopping out” during volatile conditions. However this rule change does not apply to high frequency trading (HFT)....
As widely reported, at one time yesterday the market was experiencing its worst first day of trading since 1932. After a late afternoon partial recovery, markets had it worst first day of trading in 15 years, its sixth poorest start of new year trading since...
Welcome to 2016. For most, 2015 is a year all would like to forget. The only strategy that worked was short oil/commodities and go long the dollar and buying the 10 mega capitalized growth issues....
Equites advanced yesterday on “relatively” light volume as data indicated consumer spending buoyed the economy in the third quarter. Oil halted its decline for a second day on the prospect of greater stimulus from China....
Friday was an ugly day; a trading day I believe that was again entirely influenced by HFTs. Friday the WSJ editorial page commented about the bifurcation between hedge funds/active management and passive investing....
Equites retraced their Fed induced advance. The dollar rallied and commodities were crushed further sending them to a fresh 16 year low. I believe trading was entirely dominated by HFTs as everyone knows higher short term interest rates suggests a higher dollar and lower commodity...
As widely accepted the Federal Reserve increased interest rates for the first time since 2006. The Fed also stated any future increases will be “gradual,” signaling four quarter point increases during 2016....
The narrative is beginning to rise about liquidity issues within the fixed income market, the result of Dodd Frank. These new rules imposed in the wake of the financial crisis made it more expensive and more difficult for banks to hold corporate bonds on their...