These days you're starting to hear the words 'market structure' more often as traders & investors look for reasons to explain the price action in today's market environment. Algorithms from high frequency traders, news desks, market making arms and order execution firms are 'painting the tape' now on a daily basis and retail traders find themselves further and further away from consistently profitable trades.
Just yesterday the S&P tanked almost 20 handles due to a false report claiming the White House was bombed & the President was hurt. The news was released from a hacked twitter account owned by none other than the Associated Press, a heavily syndicated news feed. A news algorithm took the markets down and right back up in a matter of seconds after the report was found without merit.
The structure of the markets has evolved into a landscape that few can understand. This series is meant to shine some light on what's really going on behind the hundreds of server farms that house all the action in the equities markets. Haim Bodek, our resident algorithmic arms dealer, & Sang Lucci bring to you the first installment of a video series we hope to garner much attention in the trading community. Help us out by leaving your feedback below and sharing the video!