The way the HFT folks hit stocks with multiple trades in milliseconds reminds me of "slug testing" which is a way for a hydrogeologist to measure the permeability or hydraulic conductivity of an aquifer.

Interesting look at an algo test (link #1 below) of Apple before the recent sell-off. I wonder if this increased activity and testing on individual stocks has any predictive value. The artificial creation of "nano-lobagolos"—the "virtual" elephant herds being much faster these days.

From yesterday, early morning, January 23rd:

1) "The High Frequency Trading Algos are getting an early start today in Apple. With only 1 exchange quoting (NY-ARCA), HFT manages to cancel/replace 32,574 orders and execute just 10 trades. Sometimes, the manipulation is so obvious that it makes you wonder what is going on with the regulator.

2) The fellow that posts about HFT and who is the CEO of Nanex, Eric Hunsader, is speaking at Harvard on February 21st from 10AM to 12PM. Might be interesting for those in the area.

About the event:

Eric Scott Hunsader is the founder and CEO of Nanex LLC. Hunsader created NxCore, a real-time streaming data feed offering unparalleled analysis of the stock markets. Often the first to report on unusual activity in the markets, Hunsader is frequently interviewed and is considered a "must follow" by professionals in the field. His research advocating against trading abuses has appeared in the Wall Street Journal, The New York Times, Financial Times, Bloomberg, CNBC, Barrons, Reuters, USA Today, The Atlantic, Risk Magazine, Zero Hedge, and Forbes. Eric has spoken at 10 Downing Street, the University of Chicago, the University of Illinois, and MIT. No stranger to the spotlight, Eric has also made appearances on Sweden's Cold Facts, Japan's NHK, RT News, and in the films Ghost Exchange and Money and Speed.


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