Tag Archives | trading

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Oil markets set up another ‘triangle’ pattern

As promised yesterday, the blog looks today at the impact of high frequency trading (HFT) on oil markets. This now takes place in micro-seconds. It is algorithm-driven via ‘black boxes’, and so fast that as Andy Haldane of the Bank of England notes: “Around 40,000 back-to-back trades can take place in the blink of an […]

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Traders focus on correlations, not fundamentals

Investors on Wall Street are no longer bothering with the boring detail of company performance. That’s the conclusion from a new study by Barclays Capital, on the correlation between movements in the S&P 500 and individual stocks. Instead, they are piling into the ‘correlation trade’, as high-speed computers now often account for over 60% of […]

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Hedge fund woes and the chemical industry

The US Senate thinks the Amaranth hedge fund increased the costs of natural gas futures contracts last year. Any pension funds invested in Bear Stearns’ hedge funds might want to check on the current value of their holdings.

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