No one traded today? Looked like a really good day for it. See you guys tomorrow.

Interesting stock market research on high frequency trading

Research by Neil Johnson at the University of Miami in Coral Gables, has identified a stock market phenomenon called a "fracture” which happens when the price of a stock briefly shoots up or down, often before returning to its original level. His research shows that there seems to be a link between these fractures and sudden stock market crashes, known as "black swans".

http://www.newscientist.com/article/dn21455-stock-trading-fractures-may-warn-of-next-crash.html


Time Lapse demonstration of effect of HFT 2007 to present
Fascinating time-lapse demonstration of the rise of HFT and market volatility from 2007 to present.

http://www.nanex.net/aqck/2804.HTML

Why isn't this trading today? Halted? Is this the RS? The answer is probably on this board somewhere, but doesn't jump out at me.

I'll check this out in more depth later tonite. I'm all for anything that helps us trade better. I have not been doing well lately, but still only mostly doing small practice trades.

Thanks for all you help.

This helps explain why the market keeps going up. I keep expecting it to correct, but it just keeps going up. Doesn't really seem to be a reason for it. Injection of liquidity makes sense - is that from the Fed?

I look forward to your getting more active on this board again. I keep losing without you!

Thanks Roy - good to see you on the board. Hope things are going well for you and Doris.

Great find Cool - thanks. This board rocks.

Great find Iggy - thanks

got it - delete now

Thanks Dot - I can't send PM , but can receive yours- send me your junk e-mail.

Ruh Roh... my trade has gone against me.

What in the heck just happened with that big surge? I am upside down on Feb10 QQQ $62puts @ .62.

Sigh....

Link please? I wanna see the proof of your statements.

Good insight Dot.

I first started playing with options during the recent down market and it "trained" me to keep expecting down. Now, I'm surprised every time it's up. I guess after this uptrend exhausts itself, my training will be better balanced.

I always appreciate your posts!

Someone mentioned possibility of a split for GOOG. Otherwise, I cannot figure out what's propping this market up. It needs a rest.

Bot QQQ Feb10 $62 puts at .68. Bad move today.

Great info Eric - thanks. Long TECO!

Glad to see someone on the board today. I can't quite get a handle on today's market. Seems confused.

Good summary of what's going on - thanks!

TECO Belize looks fine. Just a lot of political and daytrading skullduggery. Adding on Monday.

Thanks Newly. The meme du jour.

Thanks - this is a new stock to me.

Great job - thanks for posting. I am learning a lot from you.

Hi DotNet - could you please explain what you mean by premiums being taken out. I assume you are talking about Friday OPEX, but don't quite follow.

Thanks - Jane

Impressive work Illverson - gonna spend some time on this. Thanks.

Much better Mike - thanks so much!

Smart and Beer - you guys rocked today. Congrats!

Good morning Smartone - Happy New Year to you too!

I'm keeping an eye on HAL this morning - big suit by BP. It is wavering...

Suggestion for Trader's Playbook.

When you are referring to "last week's" high, or some other point on the chart, would you please state the number as well? The numbers on the chart are too small to be readable on YouTube.

Thanks - always appreciate your efforts.

Hi Farooq - very good advice.

Have a very prosperous New Year and thank you for all of your informative posts.

Newly and DotNet - thanks so much for your information. This is such a supportive board for learning, especially hearing about what has worked and not worked for you.

OK - got a lot of reading to do over the holidays.

Happy New Year everyone!

Correction to my options question:

Ex: SDS at $19/20 (or other example)

Options strategy question:

Since the market is so up-and-down, would it make sense to buy a call and a put for the same strike and expiration, with an auto-sell at a set percentage profit on each?

For example, a Jan21 SPY $20 call and a $19 put? Wouldn't you have about an equal chance of a gain on either one before Jan 21?

I know this is a really basic question - thanks for your patience while I learn.

- Jane

Welcome back Roy! You were missed. Hope that you and Doris are doing OK.

Your other trades were good today Smartone - congrats!

Sold TZA Dec 30 $26 Calls @ 1.25 +.65 yeahh!

EUR below 1.30 now, AAPL heading to $400?

Good day to short.

BOT TZA Dec 30 $26 Calls @ .60

Thanks everyone on the advice. After reading the article from this morning, I am more confident that taking the loss was the right thing.

Thanks d-k. You were a great fountain of knowledge today!

I'm also keeping a close eye on the Italian bond auction for Thursday as a possible event that can drive the market down.

Thanks - that's a great chart - does put it into more perspective.

What is a DT line?