One of the reasons for Facebook's (FB) less-than-stellar performance today may be due to the fact that the system became so clogged that traders backed away, says CNBC's David Faber. The big mid-day drop - from $40 to $38 - apparently happened because the Nasdaq temporarily stopped taking orders at one point, which created enough uncertainty that traders on many desks stopped trading the shares altogether. The SEC has launched an investigation into the issue. (video) [View news story]
Unfortunately, it's common, called "flipping" and we're better to wait for the afterMarket.
Stocks are as oversold today as they were since the doom-and-gloom days of the financial crisis, says Bespoke's Paul Hickey. In total, 5 out of 10 S&P 500 sectors are now three standard deviations from their 50-day moving average. "This is as oversold as they have been at the lowest points," Hickey says. "We simply haven't gotten more oversold than this versus the 50-day." [View news story]
Personally watching fundamentals, but won't be buying without a strong catalyst. Nibbled one (or a few) too many sucker rallies. Plus, we're looking into something of a perfect storm in politics and international finances. Interesting times.
More on the ECB/Greek bank operations: As Greeks withdraw money from the nation's banks, where are those euros coming from? The Greek banks borrow from the Greek central bank, which, in turn, borrows from the ECB. As Paul Krugman explains, the whole process depends on the ECB not saying "no more." [View news story]
High frequency trading has made markets even more susceptible to sudden failure than they were two years ago during the “flash crash,” says trading analyst Eric Scott Hunsader. A new breed of trader has emerged that is trading so large and so fast that they're causing huge spikes in price and volume. This kind of trading is creating market instability, Hunsader warns — to the extent that it could set off a cascade much worse than the flash crash of 2010. [View news story]
Good explanation and perspective. Also consider that while .01 profit per share per trade sounds innocent enough, the volume becomes dangerous, especially as HFT now accounts for an estimated 70% of trading. The tumbling effect sets off other computers....and flash crashes. Nobody really knows the HFT effect on Market manipulation, but it is certainly a factor.
The DOJ has opened a criminal investigation into the $2B Chief Investment Office loss at JPMorgan (JPM), reports Bloomberg. [View news story]
DOJ only needs to "investigate" (with much fanfare) to do damage. Wouldn't it be better left to SEC, etc? DOJ, under Holder, has degenerated into a political arm of this Adm, unfortunately.
"Wall Street is capitalism in its purest form, and capitalism is predicated on bad behavior," rants William Deresiewicz in the NYT. "Shafting your workers, hurting your customers...Leaving the public to pick up the tab. These aren’t anomalies; this is how the system works," Deresiewicz writes, adding that capitalist values are antithetical to democratic one. [View news story]
Some "step up" to take the risks and the responsibilities. Others are content to "show up".... The basic law of Survival of the Fittest is in question, tho, as we become increasingly outnumbered.
NBC Broadcasting (CMCSA -1.1%) Chairman Ted Harbert is hopping mad about a new feature from Dish Network (DISH -0.5%) that allows TV subscribers to skip commercials for prime time shows on the four major broadcasting networks. While declining to say if the action would spur legal action from Comcast, the exec did call it "an attack on our eco-system." [View news story]
IF the commercials were more entertaining, and IF they didn't consume disproportionate shares of programs, viewers might not take alternative measures. Personally I don't intend to waste time watching political attack ads stooping to calling an opponent a "vampire" etc. Call it "ad nauseum".....
"Wall Street is capitalism in its purest form, and capitalism is predicated on bad behavior," rants William Deresiewicz in the NYT. "Shafting your workers, hurting your customers...Leaving the public to pick up the tab. These aren’t anomalies; this is how the system works," Deresiewicz writes, adding that capitalist values are antithetical to democratic one. [View news story]
Always, always consider the source ~ beyond writers, the source itself, as NYT, LA Times, MSNBC, etc etc. They're all capital based, dependent on the almighty Dollar, too, and it's odd that they're busy throwing stones. We CAN be more selective in our reading & watching choices. We can also predict what they'll have to say.
Three JPMorgan (JPM) execs connected to its $2B trading loss will leave the firm this week, according to the WSJ. Bruno Iksil - "The London Whale" - will be stripped of trading duties. [View news story]
JPM cleaning its own house. Who better? and don't say our fumbling, bumbling Government, please.
Is the stock market dead? That's the question being put to a few thousand hedge fund pros at the Skybridge alternatives conference today. The ongoing lack of investor confidence and participation in the stock market has ominous implications, says Morgan Stanley Strategist David Darst. People have lost trust in not just the markets, but the entire societal structure. Sadly, Darst says, "They have a point ... You know this." [View news story]
Agree, Virginia. Traders seem to have forgotten the Market is about investing...and investors are not happy. The better question would be why aren't investors happy? and what would entice them back? Traders are resorting to "gimmicks" and the HFTs are gobbling actual investments as fast as they can. The rest is being parked in Treasuries, etc. just because they are less volatile.
"I think it's safe to say that all the regulators are focused on this," says SEC Chairwoman Mary Schapiro of the JPMorgan (JPM) news. She spoke to reporters after a speech and had no other comments on the situation. (previous from the SEC on JPM) [View news story]
Yep, all about the headlines. People ignoring headlines about SEC casing inside traders. Nada action on HFT traders. Curries favor with the Adm, too, not exactly fans of Jaimie Dimon or those banking fatcats.
Syriza party chief Tsipras tones things down a bit on the bailouts (from "barbaric," "null and void"), telling CNBC of his desire to keep Greece in the eurozone and his willingness to negotiate with the Troika to achieve such. Polls have Tsipras as the leading vote-getter if another election is held in June. [View news story]
It's all ridiculous, as well as distressing. Tsipras, now that his campaign promises are due, is willing to "negotiate" in order to stay in the EU. But ... NO austerity. The Greeks have partied on, dug their hole deeper, are throwing temper tantrums because the Candy store is closed, and yet the world is weary of shelling out more funds while Greece refuses austerity. Better to be out of the EU, learn to pull their own weight, while the EU concentrates on those willing to face reality. There's a lesson for us here, too.
Greece's unemployment rose to 21.7% in February from 21.3% previously. Youth unemployment jumped to a record 54%. Just 3.87M citizens are employed out of a population of 11.4M. Industrial production shrank 8.5% in March vs. 8.3% the previous month. [View news story]
The trouble with austerity is that they didn't try it soon enough.
"Risk markets need more ammo if they are to stay up," tweets Bill Gross. "QE3 getting closer." The S&P is near a 4-year high and the 2-year note yields 0.25%. Has addiction to the Fed gotten so bad there can't even be a one day sell-off without additional QE being floated? [View news story]
Traders nearly demand QE3...to replace the actual investors, who've disappeared. Hello? SEC?
In the disappointing jobs report, the most important statistic may have been the 63.6% labor participation rate, a 30-year low. Critics of the Obama administration are quick to seize on this as the “real” reason for the falling unemployment rate, but the downward trend has been happening for more than a decade as baby boomers have been retiring. [View news story]
Totally irrelevant post, rpgpa. Was this your political assignment for the day? Let's see. Condesension and insults. You self-identified. Back to my usual position of ignoring people with nothing to say.
One of the reasons for Facebook's (FB) less-than-stellar performance today may be due to the fact that the system became so clogged that traders backed away, says CNBC's David Faber. The big mid-day drop - from $40 to $38 - apparently happened because the Nasdaq temporarily stopped taking orders at one point, which created enough uncertainty that traders on many desks stopped trading the shares altogether. The SEC has launched an investigation into the issue. (video) [View news story]
Stocks are as oversold today as they were since the doom-and-gloom days of the financial crisis, says Bespoke's Paul Hickey. In total, 5 out of 10 S&P 500 sectors are now three standard deviations from their 50-day moving average. "This is as oversold as they have been at the lowest points," Hickey says. "We simply haven't gotten more oversold than this versus the 50-day." [View news story]
More on the ECB/Greek bank operations: As Greeks withdraw money from the nation's banks, where are those euros coming from? The Greek banks borrow from the Greek central bank, which, in turn, borrows from the ECB. As Paul Krugman explains, the whole process depends on the ECB not saying "no more." [View news story]
High frequency trading has made markets even more susceptible to sudden failure than they were two years ago during the “flash crash,” says trading analyst Eric Scott Hunsader. A new breed of trader has emerged that is trading so large and so fast that they're causing huge spikes in price and volume. This kind of trading is creating market instability, Hunsader warns — to the extent that it could set off a cascade much worse than the flash crash of 2010. [View news story]
The DOJ has opened a criminal investigation into the $2B Chief Investment Office loss at JPMorgan (JPM), reports Bloomberg. [View news story]
"Wall Street is capitalism in its purest form, and capitalism is predicated on bad behavior," rants William Deresiewicz in the NYT. "Shafting your workers, hurting your customers...Leaving the public to pick up the tab. These aren’t anomalies; this is how the system works," Deresiewicz writes, adding that capitalist values are antithetical to democratic one. [View news story]
NBC Broadcasting (CMCSA -1.1%) Chairman Ted Harbert is hopping mad about a new feature from Dish Network (DISH -0.5%) that allows TV subscribers to skip commercials for prime time shows on the four major broadcasting networks. While declining to say if the action would spur legal action from Comcast, the exec did call it "an attack on our eco-system." [View news story]
"Wall Street is capitalism in its purest form, and capitalism is predicated on bad behavior," rants William Deresiewicz in the NYT. "Shafting your workers, hurting your customers...Leaving the public to pick up the tab. These aren’t anomalies; this is how the system works," Deresiewicz writes, adding that capitalist values are antithetical to democratic one. [View news story]
Three JPMorgan (JPM) execs connected to its $2B trading loss will leave the firm this week, according to the WSJ. Bruno Iksil - "The London Whale" - will be stripped of trading duties. [View news story]
Is the stock market dead? That's the question being put to a few thousand hedge fund pros at the Skybridge alternatives conference today. The ongoing lack of investor confidence and participation in the stock market has ominous implications, says Morgan Stanley Strategist David Darst. People have lost trust in not just the markets, but the entire societal structure. Sadly, Darst says, "They have a point ... You know this." [View news story]
"I think it's safe to say that all the regulators are focused on this," says SEC Chairwoman Mary Schapiro of the JPMorgan (JPM) news. She spoke to reporters after a speech and had no other comments on the situation. (previous from the SEC on JPM) [View news story]
Syriza party chief Tsipras tones things down a bit on the bailouts (from "barbaric," "null and void"), telling CNBC of his desire to keep Greece in the eurozone and his willingness to negotiate with the Troika to achieve such. Polls have Tsipras as the leading vote-getter if another election is held in June. [View news story]
Greece's unemployment rose to 21.7% in February from 21.3% previously. Youth unemployment jumped to a record 54%. Just 3.87M citizens are employed out of a population of 11.4M. Industrial production shrank 8.5% in March vs. 8.3% the previous month. [View news story]
"Risk markets need more ammo if they are to stay up," tweets Bill Gross. "QE3 getting closer." The S&P is near a 4-year high and the 2-year note yields 0.25%. Has addiction to the Fed gotten so bad there can't even be a one day sell-off without additional QE being floated? [View news story]
In the disappointing jobs report, the most important statistic may have been the 63.6% labor participation rate, a 30-year low. Critics of the Obama administration are quick to seize on this as the “real” reason for the falling unemployment rate, but the downward trend has been happening for more than a decade as baby boomers have been retiring. [View news story]