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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?

To: axial who wrote (37352)	1/11/2011 12:19:23 AM
From: Maurice Winn	2 Recommendations Respond to of 46821

Jim, those flash crashes are totally expected, obviously going to happen, and have now been made worse because government regulators, as usual, make counterproductive decisions such as canceling trades. The flash crashes are computers testing each others' responses and market liquidity to better model markets. It's like an on-line chess match with computers looking to find the world champion investor. Those programmes which are not so clever dare not go too deeply down the trench lest they be found to be the sucker selling right at the bottom. Now they have to also calculate the regulatory response so that if they are the sucker computer buying at the bottom, they have to calculate the risk that their trade will be cancelled after the match by the slow-witted unintelligent regulators. I had planned to put in a bunch of buy orders in the hope of intercepting more flash crashes, but when the dopey regulators canceled trades, it was obvious that the regulators do not want price discovery, market depth and less volatility. They want MORE volatility and a thinner market [they might not say they want that but if we judge them by their actions rather than their words that's the outcome of their actions]. So I told the broker I wasn't going to put those buy orders in but would wait until after the regulators announce after the disaster that people are allowed to buy without having their trades canceled. Anybody puzzled or surprised by the flash crashes doesn't understand how things work or why. Neither do the algorithms "take control of Wall Street". I am in control of my shares and decide whether the price the algorithms offer is something I want or not. They don't control me, I control me. If they tell me my shares are worth 10c instead of $100, then they are welcome to do that. When the regulators say it's okay to buy without having trades canceled, I will offer to buy all the shares they are selling at 10c and bank the dividends of $1 per share. Heck, I'll be generous and offer them 20c! A price to earnings ratio of less than 1 is very uncommon but perhaps the algorithms would like to sell at such a price. Mqurice