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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (72275)	10/18/2006 1:36:12 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

Added to my blog today: What I'm about to say, may seem wild eyed, but this "stock" market has an almost unprecedented pinned looked, as if there is an historic manipulation going on in the futures pits, or with some type of Robotrader derivative trading. Free, non manipulated markets just don't act this way. I really don't think it's the Fed although they are negligent. It could be a Pig Man operation, they've captured the market, at least for now. Maybe some modern day Jay Gould and his henchman Fisk in the garb of electronic trading? Market and banking oversight today has morphed back to 1869 defacto standards for sure. Another theory, is there might even be a rogue trader or group of rogues, who have been allowed in this unregulated environment to accumulate some massive leveraged equity futures or option position, and in the short term literally hijack or at minimum strongly influence the market? Don't think so, well it's happened before. en.wikipedia.org A slightly different twist, Message 22920546 is that a thousand Riskloves and crazies are all trading the same black box program at the same time. When you look at measures such as TRIN, it just doesn't look like real money is driving this, but more like synthetic trading of some type.

To: westpacific who wrote (72275)	10/18/2006 2:21:46 PM
From: regli	Read Replies (1) \| Respond to of 110194

Computers to replace city traders by 2015? silicon.com Robo-trader on its way By Tim Ferguson Published: Tuesday 3 October 2006 The robots are on the march and there could be little that City traders can do about it. Research from IBM has predicted that by 2015 there will be 90 per cent fewer traders employed by the top investment banks as they lose their jobs to computer systems. In what IBM has dubbed the "algorithmic arms race," investment banks are trying to implement the fastest and most sophisticated systems in a bid to secure an advantage. The systems which are being increasingly used in investment banks and stock exchanges work to a set of rules or algorithms that allow them to respond to changes in market conditions and make the most profitable trades. Already the London Stock Exchange is increasing the capacity of its systems to cope with a big increase in algorithmic trading. Speed is one of the biggest advantages that these computerised systems have over human traders - as well as the ability to operate around the clock, without wages. But the threat of being replaced may be smaller for higher level traders who take strategic risk positions that computer systems are less able to determine. And Chris Skinner associate director of analysts Tower Group said trader-less exchanges won't be appearing any time soon. He told silicon.com: "Twenty years ago, people were predicting paperless offices and cashless societies. They haven't happened and neither will trader-less stock exchanges." The predictions made by IBM, are "possible but not probable", he said. Skinner added: "Most business is between people, not machines. There may be a 20 per cent fall in the number of traders in five years and possibly 30 per cent in 10 years' time." But Skinner acknowledges traders will need to become more sophisticated if they are to survive - and he said there will be a "stripping out of the gene pool" as those unable to cope with new demands fall by the wayside.