Wednesday, April 24, 2013

Ron Paul concerned about the US Dollar not Gold

CNBC on the AP Flash Crash Tweet

Finally someone mentions autonomous trading software.

Goldman Revises Bet on Gold

Jeremy Scahill: The Secret Story Behind Obama's Assassination of Two Americans in Yemen

From democracynow

Hacking Twitter for Fun and Profit

Yesterday US time the twitter account of The Associated Press (AP) was hacked and the following false breaking news tweet was sent out:

Instantly markets spiked lower, the most notable being the SP500 index free falling by 1% before recovering 3 minutes later. If you are wondering how traders could keep up with the "news", analyze the effect and place relevant trades instantly well the sad truth is they don't. Most trading firms use computer trading software to read trusted news and market participant's:  tweets, newspapers, websites, etc. The software then analyzes that data and based on weighted outcomes of that news places trades without reference to human traders. So this is how one tweet, from a trusted source, can be read, analyzed and a trading strategy formed and executed in the space of a second if not less. Note the best of these programs can execute individual trades measured in picoseconds ( 10−12 of a second).

One has to wonder if the hackers had just out of the money puts on the SP500 index waiting to capture the drop?

According to zerohedge 26,000 SP 500 e-mini contracts traded in 3 mins, see chart below:

For an amazing 3D animated chart of this event from Nanex click here

From RTAmerica

Gold mining becomes unprofitable


Newcrest Mining is reviewing the future of some of its mines, as the recent plunge in the gold price continues to take a toll on the nation's fourth-biggest mineral export industry.

Newcrest was one of several ASX-listed goldminers to reveal March-quarter results on Tuesday, and the publication of production costs revealed that numerous mines across Australasia are unprofitable at current gold prices.

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