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Tag Archives: HFT

  • Blog
    China trade agreement

    Did Everything Just Change?

    How material are this week's QE & China deal announcements?
    by Adam Taggart

    Friday, October 11, 2019, 7:53 PM

    23

    With this week’s twin announcements of new QE and a partial China trade agreement, the bulls are suddenly having the time of their lives.

    So, does this mean happy days have returned? Have we been rescued from the mountain data warning of an economic slowdown and lower asset prices? Does the Fed — and now China, too — have our back again?

    Is it time for investors to become optimistic once more?

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  • Blog

    2019: The Beginning Of The End (Free Premium Report)

    What will happen next & what to do now
    by Adam Taggart

    Thursday, January 17, 2019, 9:07 AM

    21

    Now that it is 2019, we’re going to start the new year here at Peak Prosperity by responding to our community and making our most recent report for our premium subscribers free to everyone.

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  • Daily Digest
    Image by Janitors, Flickr Creative Commons

    Daily Digest 10/11 – GW Report Falls Short Of Honest Truth, Alexa, Should We Trust You?

    by DailyDigest

    Thursday, October 11, 2018, 1:43 PM

    5
    • The World Is Quietly Decoupling From The U.S. – And No One Is Paying Attention
    • Chretien calls U.S. president 'unspeakable'
    • Alexa, Should We Trust You?
    • The Distortions of Doom Part 2: The Fatal Flaws of Reserve Currencies
    • UK Issues First Ever 'Unexplained Wealth Order'
    • Sears is in trouble: What shoppers should do if the company files for bankruptcy
    • Wells Fargo customers are fed up. They could yank billions of dollars in deposits 
    • This $69B Deal May Reshape Health Care as We Know It
    • Elderly Chinese Army Veterans Stage Massive Protest Against Police Beatings
    • South Africa’s Zulu Nation Joins White Farmers To Protest Government Land Seizures
    • The Pentagon’s Push to Program Soldiers’ Brains
    • Trump Insiders Ramp Up Rhetoric Against Russian Energy
    • Dyer: Global warming report falls short of honest truth
    • Climate change is making monster hurricanes like Michael harder to forecast
    • Yellowstone geyser erupts, vomiting decades worth of trash across park
    • How Feedback Loops Are Driving Runaway Climate Change
    • Trump Administration Waives Environmental Laws for Texas Border Wall
    • The Amazon used to be a hedge against climate change. Those days may be over.

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  • Blog
    A-papantoniou/Dreamstime

    Our Brave New ”’Markets”’

    How HFT algorithms risk a massive sudden sell-off
    by Chris Martenson

    Saturday, July 29, 2017, 1:18 AM

    7

    One thing is clear: These aren’t your daddy’s markets anymore.

    Why?  Because about 10 years ago the Rise of the Machines (aka high frequency trading algorithms) completely altered the terrain of what we call the ‘capital markets.’ 

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  • Blog

    Sympathy For The Devil?

    Trouble in paradise for the bankers
    by Adam Taggart

    Friday, May 5, 2017, 7:32 PM

    32

    We're at the point where those at the apex of power are becoming increasingly desperate to maintain their unfair advantage.

    And as the economic pie refuses to grow due to the twin overload of too much debt and declining net energy, these apex predators will turn on each other — first to maintain their spoils, and then simply to survive.

    Read More »

  • Podcast

    Eric Hunsader: The Financial System is ‘Absolutely, Positively Rigged’

    And the abuses are getting worse, not better
    by Adam Taggart

    Tuesday, April 19, 2016, 12:36 AM

    8

    Eric Hunsader, founder of Nanex, has been at the vanguard of warning about the dangers and the rampant fraud that the rise of high-frequency trading (HFT) algorithims have let loose in today's financial markets.

    While he usually feels like a lone voice in a world happy to deceive itself, he was shocked to receive a $750,000 whistleblower award from the SEC for his efforts. He's been sadly less shocked to see that since the award was publicly announced, the abuses he reported have only become more extreme and frequent.

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  • Insider
    alphaspirit/Shutterstock

    Why A Crash Is Likely

    And why we've passed Peak Easy
    by Chris Martenson

    Friday, January 8, 2016, 5:41 AM

    76

    Executive Summary

    • Why a crash is likely
    • Why the machines have won, and regular investors should flee these markets
    • Why the coming oil company bankruptcies will trigger a deflationary rout
    • Why we've passed Peak Easy

    If you have not yet read Markets Are Correcting Hard, available free to all readers, please click here to read it first.

    The Larger Lesson (Why A Crash Is Likely)

    Look, the financial markets are broken — the US, in China, and largely everywhere else around the globe. The sad fact is that the regulators have utterly failed to impose any meaningful limits on the rise of the computers and their high frequency hi-jinks.

    Now those computers dominate the entire market landscape for better and, eventually, worse.

    The reason I say ‘worse’ is because the computers deliver the appearance, but not the reality, of market liquidity.

    As long as they detect that everything is operating normally, or at least within their accepted bands or limits, then they indeed provide plenty of liquidity. But when events exceed those limits?

    The computers just shut down, revealing the true lack of market depth. The key story of all markets, bonds, commodities, futures and equities, is that each has experienced a vast diminishment of liquidity.

    Share volumes are down on the equity exchanges as fewer and fewer participants are willing play a rigged game. That’s not just…

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  • Insider
    alphaspirit/Shutterstock

    Off The Cuff: Beware The Misbehavior Of Markets

    They aren't as predictable as we think
    by Adam Taggart

    Monday, September 7, 2015, 3:31 PM

    47

    In this week's Off The Cuff podcast, Chris and Charles Hugh Smith discuss:

    • Manipulated Markets
      • How the Fed uses stocks as a signaling device
    • House Of Cards
      • Why the system is more vulnerable than ever
    • The Machines Are In Control
      • Which works well until it doesn't
    • Beware The Misbehavior Of Markets
      • They are not as predictable as we think
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  • Insider

    The Warning Indicators To Watch For Trouble In The Bond Market

    The signals that will tell when the rout is on
    by Chris Martenson

    Friday, June 19, 2015, 4:50 PM

    18

    Executive Summary

    • Liquidity is drying up
    • Volatility is returning
    • HFT has dramatically increased crash risk
    • The key takeaways for investors

    If you have not yet read Part 1: Credit Market Warning available free to all readers, please click here to read it first.

    Financial assets are worth what someone will pay for them.  A corollary of this is that you’d much rather be trying to buy or sell in markets that are deep and liquid.  Thin markets provide bad prices at best, and no bids or offers at worst.

    Low trading volumes are worrisome because they are usually accompanied by higher volatility. And those two can easily become dance partners that whirl each other ever faster. 

    There are numerous warning signs coming from all asset markets, but especially from the bond markets.

    Low Liquidity

    The issue of low liquidity really jumped out at me roughly a year ago with the news that the utterly broken Japanese government bond (JGB) market had gone an entire 36 hours without a single trade(!!).

    Japan bond market liquidity dries up as BoJ holding crosses ¥200tn

    Arp 15, 2015

    The Bank of Japan’s massive purchases of government debt hit a milestone this week, sucking liquidity out of the market to such an extent that the benchmark 10-year bond went untraded for more than a day, the first time in 13 years.

    The current 10-year cash bonds saw its first trade of the week yesterday afternoon, having gone untraded for more than a day and a half.

    Trade volume in the benchmark cash bonds so far this month dropped to less than one trillion yen, down about 70% from the same period last year.

    (Source)

    Thus comes the law of unintended consequences.  The main reason for buying JGB’s by the Bank of Japan (BoJ) was to inject a lot of liquidity into ‘the system’ in hopes that the Japanese economy would take off.

    While that may have happened to some (slight) extent what also happened was that …

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