Dennis Dick discusses “Information Arbitrage” at Bright Trading. Topics include high frequency trading, informed and uninformed order flow, strategy, and tactics for more efficient execution.
AEP and NEE lose more than 50% of their value in one second today, and then rebound entirely. This entire move caused by market structural issues. Here is the tale of the tape:
To understand more about trade-throughs and mini-flash crashes, see this month’s CFA Magazine: Erroneous Combustion
The most important asset to any trader is a quick and accurate news source. The news service that we use at Premarket Info is Benzinga Pro. Here is a quick overview of Benzinga Pro, and how we use it in our daily trading routine:
More information about Benzinga Pro can be found at: www.benzingapro.com
Traders tend to make technical analysis very complicated. The most powerful technical indicators are really quite simple – support, resistance, and trends. We’ll discuss these important technical indicators and show you how we use them in our daily trading:
For our daily support and resistance levels click here: Support/Resistance Levels
Harris Corp reported preliminary earnings tonight. They cut their 2013 outlook and announced job cuts, which is obviously not good for the stock. HFT news algorithms specialize in trading off these headlines and picking off limit orders that are out to lunch.
Check out the tape:
The news was reported at 16:20:00. Notice the time it took the HFT news algorithm to respond to the news – instantaneously.
It is a very dangerous game to make markets after hours in this HFT world, and the traders that bought this stock between $45 and $46 just learned the hard way, as the stock is now trading at $43.50.
They were sitting ducks.