To find out what demented logic may have driven yesterday’s big rally, I had to steal a peek at Yahoo Finance.com’s site. Shoot me for not seeing this myself, but it would seem that the miscreants, child molesters, weasels and sociopaths who are handsomely paid to throw other people’s money (OPM) at stocks threw it at some of Q1’s worst laggards, most particularly energy stocks. Another reason given for the price surge was the “eased tension in the Middle East”. This is understandable on a day in which no beheadings or suicide bombings were reported. It may have been helped by signs that a nuclear deal with Iran is close. What could be more soothing to the geopolitical world than an agreement that treats the Ayatollah and his negotiating team as – to use Obama’s very favorite word – “folks” ? All they ever wanted, really, was a little love, attention, recognition — and most of all, trust. This we have given them unstintingly, with a payoff in whirled peas that promises to make the world a safer place.
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If there was a way to have legislation for algo market makers acting in the role of de facto agents of the exchanges being prohibited from being allowed to profit from trading (thus only being allowed to make markets) the markets could maybe then begin to come back to a state of fairness.
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The regulators and exchanges are in on the conspiracy, MR. How else to explain why the algos still exist? The lgos claim they add market liquidity, but the volume they generate is more than half of the total. Even more significantly, their trades bear no market risk. The fraud is transparent, yet the exchanges greedily seeking to inlfate their volume, simply look the other way. RA