Thursday, October 16, 2014
Have Stocks Stopping the Free Fall? Wait till the Fed Speaks to see a turn around.
(Yahoo.com).The SEC has charged a small firm, Athena Capital Research, with using rapid-fire trades in the final seconds of the trading day to manipulate the closing prices in some NASDAQ-listed stocks. The SEC alleges Athena used an algorithm called Gravy to "mark the close." It traded on the order imbalances that occur at the end of the day. When there is an imbalance between buyers and sellers, NASDAQ routinely runs an auction to fill the order imbalances at the best price at the close. Athena, the SEC says, placed orders to fill imbalances, then traded shares on the market prior to the close on the opposite side of the order.
(CERR Investments). Here we go again, big industry asking the Feds to stay in the game and buy more bonds and not end QE3. Keep bank deposits, money markets, and bond interest rates as low as possible. Feds should share in the blame it people loose money in the markets since they are driving people to the markets. More free money to the big banks and big industries. This is not a fair game when the few can drive the market. Big industry is pushing down prices to get a better entry. The middle east is pushing down gas prices to keep shale oil and other industries price prohibitive. Is this just business as usual? Watch for Feds to give a speech at any time now to cause markets to react.