HFT Computers Melted Markets Up

Midday Market Commentary For 10-03-2012

Sure enough the HFT algo machines melted the markets back up while the volume is low enough for them to manipulate the averages. There has not been any news that would account for the markets rise while the oil and precious metals haven’t moved at all. If you can’t see this anomaly as being suspicious I don’t know what to say.

I just read where one pundit says the market is waiting for the presidential debates tonight before making a move. Pundits have also said the market was waiting for Bernanke to roll out QE3 while others have said the market is waiting for the US Presidential election. There have been others that have said the market were waiting for this and that before we are going to see a changing market.

Don’t these so called financial experts get the picture? This market place has been reduced to garbage trading and HFT algo computer manipulation because the ‘cash crowd’ has since long gone to the safety net of their mattress’s.

What you see today is going to become the ‘New Normal’. Low volume, narrow trading bands, Dark Pool manipulation and a lack of confidence in market integrity, all because the cash crowd has been wiped out by the Keynesian central bankers and the financial crooks that proliferate Wall Street.

The Financial Times reported, “The evaporating transparency of our equity markets is an unwelcome turn from recent lessons [learned]. In the wake of the 2008 financial crisis, there was broad consensus that institutional and retail investors need markets to be open and transparent.” The FT goes on to say, “It’s not an academic question. Investors have withdrawn billions of dollars from US equity markets in recent years, at least in part due to a lack of confidence in market integrity.”

The RRR** has been very narrow since the opening bell and any trades will probably end up on the unprofitable side as long as this market has low volume and remains flat. Swing trading is at your own risk and being the market is at a crossroads of sorts, I would prefer to sit on my hands rather than risk guessing incorrectly. Like you, I am waiting for a clear signal so I can place my bets.

The DOW at 12:30 is at 13517 up 36 or 0.27%.

The 500 is at 1452 up 7 or 0.49%.

The $RUT is at 843.19 up 2.68 or 0.32%.

SPY is at 145.28 up 0.78 or 0.54%.

The longer trend is up, the past week’s trend is neutral and the current bias is up.

Oil pares decline modestly after supply data

WTI oil is down today and is at 89.14 trading between 91.81 and 88.64 and the bias is neutral.

Brent crude is down today and is at 109.33 trading between 111.33 and 108.20 and the bias is slightly positive.

Gold is up today at 179.08, trading between 1770.71 and 1781.66 with a neutral bias.

Dr. Copper is at 3.78 down from 3.82 earlier.

The US dollar rose from 79.80 earlier to 80.08 and is currently trading at 80.02.

** RRR = Risk Reward Ratio

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Written by Gary