Earlier today I posted an interview with Joe Saluzzi which he
did on Bloomberg. He's an institutional trader. In the interview he
talked about the lack of genuine liquidity in the market and the
potential for havoc that exists. I found that he has quite a bit up
on his website.
This
piece sums up the problem, and makes clear that what's going on
has the potential to create a huge market disrupting event. He has
a lot on his site -- it's worth having a look around. You have to
wonder if the seeds aren't being planted here for something like a
re-run of 1987 at some point.
steve- if we do get one more push up to complete
wave 5 on your 15 min chart, that would likely push the VIX
down to the bottom of this falling wedge which is getting close to
the normal break-out range (in relation to the apex).
coincidentally, or not, if broken up soon, this wedge projects to
that green R zone which is nice horizontal R on the VIX.
would be quite the pullback in the market if it plays out.
Previously posted by dodgerdog (Title: SPX 15 Short Term
View) :(
toggle)
High Frequency Trading is 60% of the market -- What happens if they go away one afternoon?
Posted by puma on 1st of Jul 2009 at 08:30 pm
Earlier today I posted an interview with Joe Saluzzi which he did on Bloomberg. He's an institutional trader. In the interview he talked about the lack of genuine liquidity in the market and the potential for havoc that exists. I found that he has quite a bit up on his website. This piece sums up the problem, and makes clear that what's going on has the potential to create a huge market disrupting event. He has a lot on his site -- it's worth having a look around. You have to wonder if the seeds aren't being planted here for something like a re-run of 1987 at some point.
If we get a Hindenburg
Posted by dodgerdog on 1st of Jul 2009 at 10:37 pm
If we get a Hindenburg Omen on the next rally phase - I would become very cautious since this signal has ALWAYS preceded every major decline.
Re Post from Early June
Posted by dodgerdog on 1st of Jul 2009 at 10:38 pm
steve- if we do get one more push up to complete wave 5 on your 15 min chart, that would likely push the VIX down to the bottom of this falling wedge which is getting close to the normal break-out range (in relation to the apex). coincidentally, or not, if broken up soon, this wedge projects to that green R zone which is nice horizontal R on the VIX. would be quite the pullback in the market if it plays out.
I will be keeping a lookout for the Hindeburg Omen since NO MAJOR DECLINE has started without one over the past 25 years. Needless to say, one did occur at the start of Primary Wave A down.
Here is the criteria for the Hindenburg Omen: (you may want to save this)
That the daily number of NYSE new 52 Week Highs and the daily number of new 52 Week Lows must both be greater than 2.2 percent of the total NYSE issues traded that day.
That the smaller of these numbers is greater than 75. (This is not a rule but a function of the 2.2% total issues)
That the NYSE 10 Week Moving Average is RISING.
That the McClellan Oscillator is NEGATIVE on that same day.
That the number of NEW 52 Week Highs cannot be more than twice the NEW 52 Week Lows. This condition is mandatory.