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Friday 28 August 2015

Stock market Meltdown | was it caused by The Computers, The Fed, The Media or China?



Computer algorithm trading, China, the Fed and The media.
I wonder how much some of Tuesday s drop was due to computers selling based on algorithms.
See link
Mysterious Algorithm Was 4% of Trading Activity Last Week


Everything now is computerised, In fact I'm concerned this computer sometimes writes its own bulldust on this blog!
With few traders on the floor, maybe computerised trading is an issue, a trader chasing a long term stock, might step in and buy on a gut feeling rather than an algorithm.


Or was it the Fed, talking about rising interest Rates for the first time in many years.
Or was it China and the slowdown that’s supposedly happening.

Or was it the media, and what the daily correspondent from China or Greece said at his Breakfast sound bite for CNN.


Does it really matter? maybe we can beat the machines or work with them , managed to pick up some WPL, Woodside petroleum P/L , for superfund , an order that my computer had in for under $30, on my gut feeling that Woodside under $30 might look good in a couple of years, which is a 7% gain for the week, so computers are good for some things in the market.

The challenge is always buying good, preferably “Great” companies, at the right price, I don’t think “The” Computers, “The” Fed, or “The” Media are going to change that!
Strangely enough we have recovered our losses for the week, not much in today’s paper about that!

In fact, as off Fridays close, we are up nearly 1% for the week!

 
 

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