More On Mystery Bids
#1
Posted 05 February 2007 - 09:49 PM
This may in fact be the world wide glut of liquidity at work as some suggest, but someone is placing the robotic orders. I don't think these bids are coming from Scottrade accounts.
So, I figure this bull leg will end when the public and "everyone else" fails to act for an extended period of time. Of course it could be that insitutions and others, are by coincidence, all using the same buying strategy, at the same time, all in the same way, and the result is a super robotic looking trading pattern.
James
#3
Posted 05 February 2007 - 10:40 PM
~Benjamin Franklin~
#4
Posted 05 February 2007 - 10:58 PM
U.F.O.James, you're 100% correct. Over the past year or so a record number of corporations have initiated stock buy-back programs. Through the roof. This, if no other reason is visible, accounts for a a large supply depletion. There isn't enough stock available to satisfy worldwide demand. The bull is alive.
U.F.O.
I hope I am not being mis-understood. IMO there is more to the "supply depletion" than meets the eye. The supply is never actually reduced. Corporations simply own their own stocks that another investor would otherwise own. Even when one corporation buys another stock never actually disappears. When the market finally tanks, the buybacks will become big big burdens.
I am anything but bullish.
I don't know the source of the mystery bids and I am not sure anyone else does either.
James
#6
Posted 05 February 2007 - 11:01 PM
#7
Posted 05 February 2007 - 11:47 PM
Kisa:
That is an interesting article. I don't know anything about algorithmic trading. I would imagine it would work pretty good until becomes the technique of choice. Then the algo people will start walking on each other and cancelling one another out. It doesn't take long for thought to become standardized and activaties syncronized. Anything that is successful gets piled on until it isn't successful anymore.
Something like Algorithmic trading could be what is behind the mystery bids. If it is, the market is really in trouble.
James
arent bull markets fun???????....wooo wooooooo
Chief:
Bear markets are fun also. The market is fair. That way everybody gets to have fun some of the time. Right now its your turn. Now, go do some back flips.
#8
Posted 06 February 2007 - 12:16 AM
#9
Posted 06 February 2007 - 12:21 AM
Kisa:
That is an interesting article. I don't know anything about algorithmic trading. I would imagine it would work pretty good until becomes the technique of choice. Then the algo people will start walking on each other and cancelling one another out. It doesn't take long for thought to become standardized and activaties syncronized. Anything that is successful gets piled on until it isn't successful anymore.
Something like Algorithmic trading could be what is behind the mystery bids. If it is, the market is really in trouble.
James
arent bull markets fun???????....wooo wooooooo
Chief:
Bear markets are fun also. The market is fair. That way everybody gets to have fun some of the time. Right now its your turn. Now, go do some back flips.
well arent YOU having fun 2?????
#10
Posted 06 February 2007 - 12:24 AM
I have been bidding the market. I know a lot of other people who have been doing the same. There is no mystery. This is a buy and hold market. Not buy and sell.
Denleo
If you and the other big traders are bidding then that settles it.