Christopher A. Farrell
@farrell_author
New York Times Best-selling Author and Trader for almost 30 yrs. Former Wall Street market maker. Book and film on the future of Wall Street coming soon.
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Speed is one of #WallStreet’s most precious commodities.This is the #nasdaq 100 #futures $nq #trading in real time this morning. An $qqq #Futures index based off Names like $AAPL $TSLA $FB $MSFT $AMZN. Supply and demand moving thousands of times faster than u can blink.
Important to remember: not all #Wallstreet #trading involves #darkpools, #marketmanipulation or predatory behavior. Here is an example of a fair matching of buyers and sellers on the NYSE on the 4pm closing print on the NYSE in MER pref K on Dec 31. 45,546 shares.
More evidence today of the destructive forces of speed on #wallstreet , this time in $car #Avis. From 11:16:24 To 11:16:27, in only 3 seconds, the stock moved up over $33 from $408.86 to $441.99. And then right back down to 409.85 seconds later.
The #history of financial speculation pre-dates Wall Street. 4 centuries before high speed algorithms took over #WallStreet, traders on the Amsterdam Stock Exchange, (photo courtesy of the #rijksmuseum ) were engaged in very creative forms of deception and market manipulation.
For all of the celebration surrounding the listing of the WeWork #wework #ipo on the #NYSE recently, it is a sign of the times that so few of the trades occur on the NYSE. A 3 second snapshot of trades at 10:30:54 reveals only 1 of 17 trades printed on the NYSE.
As much as Wall Street has changed in the past 25 years, the ghosts of the past are still here sometimes. Notice the $1.70 wide bid-ask spread today in #DWAC at 1:34:03 est time today. Is this 2021 or 1995?
Stock halts were designed to keep markets orderly.But sometimes it can incentivize another kind of predatory behavior:"leaning on the ask".Shorts can gang up to force a stock into a halt, preventing longs from getting out. #DWAC had 98,300 shares on the ask at 108.88 as it halts.
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