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Technology Stocks : The *NEW* Frank Coluccio Technology Forum
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To: axial who wrote (35713)9/16/2010 2:04:47 PM
From: Win-Lose-Draw  Read Replies (2) of 46821
 
Liquidity pockets like that happened all the time in the Good Old Days. Back in the day, the co-located computers - known in those days as floor traders & specialists - basically pocketed the difference as the cost of holding something nobody temporarily wanted to buy. Such jumpies, especially the short-lived ones (and there were LOTS of them, it happened all the time) often never hit the ticker (unless something big was happening).

The real difference is now we have replaced the human co-locates and their hand signals and dubious paper trails with computer co-locates that have (or at least can have) rock-solid data keeping and reporting. So the technology is allowing us to see "all" the data, and for many it is the first time they've seen just how dislocated the markets can be on very short time scales.

It can be disconcerting, as it violates the widely-held myth that markets are "almost always" a smooth, well-oiled machine, but there really isn't anything new happening here.
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