Re: U.S. Seeks to Shield Goldman Secrets

On Oct 27, 2010, at 9:19 PM, Lance McLain wrote:
> The arrest of the Goldman programmer helped put high-frequency  
> trading into the spotlight last year. The strategy, in which  
> powerful computers buy and sell securities at ultrafast speeds, has  
> proved lucrative for many traders.
>
> The indictment said Goldman's high-frequency trading operation  
> generated "many millions of dollars in profits per year."
>
> The strategy also has come under heightened scrutiny amid concerns  
> that some high-frequency traders were gaining unfair advantages in  
> the market. The Securities and Exchange Commission has launched an  
> in-depth study of issues surrounding high-speed trading and is  
> considering several proposals to monitor it.

This is how Goldman has had entire quarters without a single day of  
trading losses.  That is statistically impossible if this market were  
fair.  They have faster co-located computers, API's directly into the  
exchanges trading systems, insider information as market makers and an  
SEC that looks the other way at their quote-stuffing and front running  
computers.  The latest estimates are that 70% of all trades on the  
NYSE are held for less than 11 seconds!

Don't buy stocks.  Go to vegas.  Your odds are better.

regards,
-Lance


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