SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Elroy Jetson who wrote (134123)6/9/2017 1:42:16 AM
From: Maurice Winn  Respond to of 217580
 
Thanks for the information on Knight Securities and their short blunder and algorithm trading software fault.

I hadn't thought of it before, but I now realize that just as computer trading software conducts Flash Crash war games to duel with cyber competitors and regular humans, hunting margin calls, fearful hands, stop loss orders, and maybe even precipitating a general panic, they must be doing the same on upward peaks such as can result from a well orchestrated short squeeze, overloaded options and what have you.

Maybe we're watching a short massacre in which case the trading computers will keep squeezing until they calculate it's time to bail out and start selling flat out taking TSLA back to earth, maybe even over-running into a flash crash to see if irrational exuberance got too good a grip and seeing if margin calls, stop loss orders and general panic stampede gives a double opportunity.

Those short at $200 and $250 must be getting nausea if not compulsory short covering.

Mqurice