Tag Archives: Stock market crash

French Senate Start Taxing High-Frequency Trading In January

According to a report by Ulrika Lomas of Tax-News.com, the French Senate, with its left-wing majority, has approved plans to establish a tax on automated transactions in France, to curb the rapid rise in high frequency trading.

“This form of trading merely serves to derail the markets and lamented the lack of visibility for both investors and issuers and the lack of contribution to the country’s real economy.”

Nicole Bricq

Proposed by general budget rapporteur Nicole Bricq, the tax had been adopted by the Senate finance committee recently, highfrequencytrading911.com writes.

The new initiative proposes to impose from January 1, 2012, a tax on certain investment service providers in cases where daily cancellation rates for orders for buying and selling financial instruments on public markets exceed 50%.

Bricq warns that this form of trading “merely serves to derail the markets and lamented the lack of visibility for both investors and issuers and the lack of contribution to the country’s real economy.”

Commenting on its decision to back the plans at the time, the Senate finance committee pointed to the “flash crash” stock market crash of May 6, 2010 in the US and to the stock market crash in Europe in August of this year, which, it argued, served to fuel the controversy surrounding both the impact and the usefulness of high frequency trading.

And the controversy continues….

 

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Filed under International Econnomic Politics, Laws and Regulations, National Economic Politics

Hindenburg Creator Takes Off

Even though the so-called Hindenburg Omen is, at best, an imperfect technical indicator and a work in progress in  most analysts vie, its latest appearance has prompted the Omen’s creator, Jim Miekka, to exit the stock market.

“It’s sort of like a funnel cloud. It doesn’t mean it’s going to crash, but it’s a high probability. You don’t get a tornado without a funnel cloud.”

Jim Miekka


“I’m taking it seriously and I’m fully out of the market now,” Miekka, the blind mathematician tells The Wall Street Journal in a telephone interview from his home in Surry, Maine.

“I would’ve probably stayed in until the beginning of September,” depending on how the indicators varied. “That was my basic plan, until the Hindenburg came along,” he says.

The Omen has been behind every market crash since 1987, but significant stock-market declines have followed only 25% of the time.

So there’s a high likelihood that the Omen could be nothing more than a false signal.

But that isn’t stopping Miekka from taking any chances, especially as September – typically the market’s worst-performing month  is only one week away.

“It’s sort of like a funnel cloud,” he says.

“It doesn’t mean it’s going to crash, but it’s a high probability. You don’t get a tornado without a funnel cloud.”

He adds that he’s not currently shorting anything, although he may look to short Nasdaq stock index futures in the next few weeks; “depending on how the technicals go.”

Despite the ominous forecast, there are some glimmers of hope.

Miekka doesn’t expect to sit on the sidelines for very long. In fact, Miekka, who is an avid target shooter despite being blind, is looking at put volumes and various moving averages that will offer clues of when he will start buying again.

Related by the Econotwist:

Feared Indicator Warns Of Catastrophic Stock Market Event

Wall Street: The First Hindenburg Omen Confirmed

Jm Cramer Shoot Down The Hindenburg Omen

Wednesday’s Market Action As Predicted By Jim Cramer

Jim Cramer’s Web Company Investigated By SEC

Jim Rogers Says CNBC Is A PR Agency

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Christopher A. Farrell,Hardcover - Second, Edition: 2,Series: Wiley Trading Series, English-language edition,Pages:187,Pub by Wiley, John & Sons, Incorporated

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Jm Cramer Shoot Down The Hindenburg Omen

Not only did we just have a second, and far more solid Hindenburg Omen confirmation today, with 82 new highs, and 94 new lows, but the Saturday is the day when Iran launches its nuclear reactor, and everyone will be very jumpy regarding any piece of news out of the middle east.

CNBC Host Jim Cramer

As for the Hindenburg Omen, the more validations we receive, the greater the confusion in the market, and the greater the possibility for a melt down (or up, as the case may be now that the market is unlike what it has ever been in the past).

Furthermore, with implied correlation at record levels (JCJ at around 78), any potential crash will be like never before, as virtually all stocks now go up or down as one, more so than ever before.

Well, here’s CNBC‘s Jim Cramer having a bashing over the recent chatter of an impending crash:

Vodpod videos no longer available.

Wednesday’s Market Action As Predicted By Jim Cramer

Jim Cramer’s Web Company Investigated By SEC

Jim Rogers Says CNBC Is A PR Agency

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