I THINK THIS ARTICLE NAILS IT.....read it here
"Prices in the stock market, for instance, flap around as computers decide whether the institution should be a buyer or seller at a certain level. This has led us into the unknown, as explained by the Financial Times: “An explosion in trading propelled by computers is raising fears that trading platforms could be knocked out by rogue trades triggered by systems running out of control.”
12 90% volume days in 2 months, this is outright craziness and a symptom of our corrupt and controlled markets, there is nothing free about them.
I am worried old tried and true analysis may prove futile in helping to predict future price action as human emotion is not the only thing we are guaging with computer program high frequency trading dominating the overall volumes.
Let them put in all kinds of circuit breakers, computers have no emotions.
D
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