Broken Markets

I am going to call this algo fooprint the pagoda pattern – bots searching for stops without fully committing.

“Bewildered by ‘casino capitalism’? Stunned by waterfall declines in individual stocks – not to mention the entire market – that reverse in the space of an hour or two? Perplexed by the evident schizophrenia in traders’ herd-like embrace of “risk on” and “risk off” often many times a day? Gab smacked by the spectacle of major market averages climbing to new highs while investors pull hundreds of billions out of equity mutual funds – and trading volume evaporates? Frustrated – or mad as hell – that no matter how carefully you try to trade, someone always beats you to the punch? READ THIS BOOK. Sal Arnuk and Joe Saluzzi are rarities on Wall St. Genuine market pros in every sense of the word “genuine.” With the integrity to match. And investigatory enterprise and zeal that meets and exceeds any I’ve seen in nearly 40 years as a financial journalist.. Sal and Joe explain in wonderfully clear language how, instead of banning card counters, as they do in Vegas, Wall St. has re-made itself over the last decade or so to not only stack the deck in the card counters’ favor but to enable them to do so via ever-faster computer networks and algorithms, that leave not only ordinary investors but many sizable institutions, like pension funds, with worse odds than on a lottery ticket. There’s more, much more, in Joe and Sal’s book; it’s quite simply a must-read, if you care about your capital – or the future of our capitalist economy.”

-Kate Welling, former founder, editor, publisher at Weeden & Co.
LP, Welling@Weeden, former Managing Editor at Barron’s

More: Financialization is the root cause of oil and commodity price volatility


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