One annoying computer program

gmanGilbert Mendez's (Gman's) Blogs, Reading the TapeLeave a Comment

Lately I have spotted a new computer program in my stocks and I think its important to briefly talk about these silly games.

In our training program we talk about catalysts in a stock before making its move. There are plenty of times when you can see the buying/selling in a stock but it needs something to make the stock move…almost always it is the case that someone has to get screwed on the wrong side to create the panic. Well this is one of those cases. The computer program as of lately will buy buy buy at one given price but wont go up until he drops, gets someone on the wrong side and then runs. Most importantly is that they could buy 300k shares at any given price but the catalyst is someone getting on the wrong side with 5-7k shares. Wonder what genious PhD came up with that program. While very annoying it is just part of the game and there’s not much we can do but to stick with it.

Just so you see what happens next here is the chart for that day:

fnm-screwjob.bmp

Learn from my pain. the end.

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