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NASDAQ, the Latest Victim of Digital Dependency

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Credit of a different breed -- that of credibility -- is the issue at hand for markets at large.

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Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.

Just kidding!
-- Johnny, Airplane!

This morning, I shared the following Random Thought: "Robot errors should increase in frequency as HFT manifests."

A few hours later, the NASDAQ halted trading, producing the flat-liner in the chart below.

As the global digital dependency continues -- and robotic algorithms take the place of human capital -- these glitches will become increasingly commonplace.

The question, of course, is how it manifests through the lens of investor faith and confidence; indeed, we've seen this movie before.

Of all the stock market metrics -- fundamentals, structural, technical, and psychological -- the collective perception is the single most important influence; you can never cage free will.

As we wrote long ago, credit of a different breed -- that of credibility -- remains the issue at hand for markets at large.

Given the Waning Integrity of US Financial Markets and The Devolution of Social Mood, today's NASDAQ crash is just another straw on the camel's back.



R.P.

Twitter: @todd_harrison

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No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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