High speed trading puts investors on losing end

High speed trading firms buy and sell millions of stocks every second of the day. The moment they sense a big order is coming, they can quickly jump in and out of the market, pushing prices sharply higher or lower, and making a tidy profit before other investors even have a chance. Trading firms get paid fees every time they buy or sell a stock on the public market. They also pay to list buy and sell orders, but those fees are much smaller. Secrets of a former high speed trader “Institutional investors are paying more and more to get large sized orders done,” said Dave Lauer, a former high speed trader.
Source: http://money.cnn.com/2013/08/15/investing/high-speed-trading-exchange/index.html

LPL Financial Introduces Enhanced Trading & Rebalancing Tool / Platform for Financial Advisors

Though equity options cannot be traded until after 8:30 am CT (9:30 am ET), I can begin to start setting up my trading strategy based on what the E-mini has done throughout the night. The majority of stocks (around 70%) will move in the same direction as the E-mini. Knowing this, by the time the U.S. opens at 8:30 am CT (9:30 am ET), I know if the majority of stocks will open down or up based on what the E-mini has done throughout the night. Once the U.S. market opens, the U.S.
Source: http://www.tradingmarkets.com/recent/my_simple_strategy_for_trading_options_intraday-677479.html

Trading with a Method – Your Most Important Market Decision

A simple description of my trading method: RAWCTER: 1) Research a lot of markets, 2) Anticipate a market move but 3) Wait for a 5) Time has come to 6) Execute a trade with 7) Risk management contingencies. My Research will often lead me to Anticipate market moves. You could call that having a hunch. Butsince having a hunch is a weak foundation for risking money I will (usually) Wait for a Confirmation that Market Psychology is beginning to see things my waya Confirmation that the Time has come to Execute a trade with Risk management contingenciesfor instance, keeping the Time frame of my trading in sync with the Time frame of my analysisusing stopsmanaging position size. Butfrom an emotional perspective waiting for a Confirmation is difficultespecially when I really believe that my hunch is right. (Imagine being very bearish a marketanticipating a big breakmaybe even a crashbut left sitting on the sidelines through a sharp breakdown just because there hasnt been a Confirmation signal to go shortnow thats really hard to take!!) ButJust because I think a market ought to do something does not mean that the Time has come to put on a trade.
Source: http://howestreet.com/2013/08/trading-with-a-method-your-most-important-market-decision/

Stocks mixed in early afternoon trading

THIS WEEK: Key housing reports coming The yield is the highest it’s been since July 2011. It has been rising sharply from its recent low of 1.63% reached in early May as the economy improves and as investors anticipate an end to the Federal Reserve’s huge bond-buying program. The quick rise in bond yields has worried some investors because it leads to higher interest rates on many kinds of loans, including home mortgages and corporate reference loans. “I do think we’re not too far away from that point in time where this heavy increase in bond yields is going to start impacting the (stock) markets,” said Doug Peebles, chief investment officer of AllianceBernstein Fixed Income. VIDEO: Cramer’s top REIT pick The price of oil fell as benchmark oil for September delivery was down 20 cents to $107.26 a barrel on the New York Mercantile Exchange.
Source: http://www.usatoday.com/story/money/markets/2013/08/19/stocks-monday/2670005/

Everbright Gets China Proprietary Trading Ban After Error

(601788) s woes worsened after erroneous trades that sparked the wildest Chinese stock swings in four years as the firm was banned from proprietary trading and said it today mispriced a bond sale. State-controlled Everbright said yesterday it placed 23.4 billion yuan ($3.8 billion) of incorrect buy orders on Aug. 16, prompting the three-month ban and an investigation by the China Securities Regulatory Commission. The company gave the wrong price for 10 million yuan of government bonds today, it said on its website. The ban is a further setback to a brokerage already contending with falling profits and a CSRC probe into an initial public offering that Everbright worked on, which forced it to delay a $1.3 billion sale of its own shares. The Shanghai Composite Index (SHCOMP) jumped from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes on Aug.
Source: http://www.bloomberg.com/news/2013-08-18/everbright-trading-error-adds-to-china-broker-s-woes.html

We Like Trading the US Dollar Break Higher but When?

IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES IS MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS.
Source: http://finance.yahoo.com/news/trading-us-dollar-break-higher-140000331.html

Stock market opens lower after Nordstrom joins other retailers in cutting outlook

The Standard & Poors 500 index slipped 5 points, or 0.3 percent, to 1,657. The Nasdaq composite rose one point, or 0.05 percent, to 3,607. More business news Zachary A. Goldfarb Racial progress past and future will converge when he marks 50 years since the March on Washington. More business news Department store Nordstrom cut its profit outlook for the year late Thursday. Its stock fell $1.83, or 3 percent, to $57.46.
Source: http://www.washingtonpost.com/business/stock-market-opens-lower-after-nordstrom-joins-other-retailers-in-cutting-outlook/2013/08/16/eba46cac-067a-11e3-bfc5-406b928603b2_story.html

Disruptions in electronic markets have been under scrutiny since a May 2010 incident in which the Dow Jones Industrial Average fell almost 1,000 points in minutes before rebounding. This is a negative development for wwwtckyohotcom Everbrights stock, said Liu Jun, an analyst at Chang Jiang Securities Co. in the central city of Wuhan. Everbright Securities business transformation has been slower than expected and its investment banking business is under investigation, which could affect its bond underwriting. The Shanghai Composite jumped from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes during the morning session, as 16 of the measures 20 biggest companies by weighting increased by the 10 percent daily limit.
Source: http://www.bloomberg.com/news/2013-08-16/everbright-securities-investigates-trading-system-error-1-.html

and AT&T Inc. fell 1.7 percent and 0.5 percent, respectively. Stocks such as utilities, pharmaceuticals and telecommunications are often purchased because they provide a higher-than-normal dividend. As Treasury yields rise, it makes all dividend-paying stocks less attractive to investors because Treasuries can provide a similar return with significantly less risk. You try to focus on stocks that usually benefit from higher interest rates — banks are a good example, said John Fox, who oversees $873 million in assets as co-manager of the FAM Value Fund. The Dow has fallen 3.7 percent from its all-time high of 15,658.36 two weeks ago.
Source: http://www.washingtonpost.com/business/stock-market-edges-higher-early-friday-but-stocks-remain-down-for-the-week/2013/08/16/22e1d9b2-0684-11e3-bfc5-406b928603b2_story.html

Nordstrom shares fell $2.13, or 3.6 percent, to $57.20, making it the second-biggest decliner in the S&P 500. The retail industry is a closely-watched part of the U.S. economy as consumer spending makes up roughly 70 percent of economic activity. The disappointing outlooks are especially worrisome because they come during the back-to-school shopping season, typically the second-biggest shopping period for U.S. retailers.
Source: http://www.newser.com/article/da8766f81/stock-market-on-pace-for-down-week-hurt-by-retailers.html