(snip)The market has gotten to the point where, at least according to ICI, no matter what stocks do, all equity investors do is pull money out. The week ending June 16 was the 7th sequential week in a row to see domestic equity mutual fund outflows: $1.8 billion was redeemed, bringing the total for the 7 week period beginning May 5 to ($30) billion, and year to date to ($29) billion. Yet instead of following the trail of money (wrong direction), stocks are hanging on to the EURJPY and the several HFT algos, which together with the prime broker brigade keep the market afloat against the natural flow of funds."(snip)
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Translated into English, it would appear that High Frequency Trading algorithms working from primary broker money ( i.e. FED money ) are having to fight an escalating battle versus 'individual' investors to keep the US stock markets afloat over the past month.




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