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reply posted on 6-7-2009 @ 11:25 AM by fromunclexcommunicate
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We have been reading about how Goldman Sachs has been using high frequency arbitrage trading algorithms to beat the day traders. You just don't
stand a chance against that kind of machine in the short term.
This mornings 30 year treasury yield was up to 4.37% so it looks like at least the long term interest rates are starting to rise. The Fed will be
auctioning off 11 billion more 30 year bonds Thursday. If yields continue to rise that should put some pressure on the equities markets. The GS
arbitrage programs trigger off other investors reactions not future news so the GS computer would not be intuitive enough to dump stock early.
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reply posted on 6-7-2009 @ 12:19 PM by Hx3_1963
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Bail set at $750,000 for ex-Goldman programmer
www.reuters.com...
NEW YORK (Reuters) - A former Goldman Sachs computer programer accused of stealing secret trading codes from the investment bank was being held in
federal custody on Monday, pending the posting of $750,000 bail.
Sergey Aleynikov, 39, was ordered by U.S. Magistrate Kevin Nathaniel Fox in Manhattan on Saturday to post a $750,000 personal recognizance bond to be
secured by three financially responsible people.
The bond also was to include $75,000 in cash, and Aleynikov was ordered to surrender his passport.
Aleynikov, a Russian immigrant living in New Jersey, was arrested on Friday night by FBI agents at Newark Liberty International Airport after
returning from Chicago, according to court documents.
He is accused of "theft of trade secrets" related to computer codes used for automated stock and commodities trading at an unspecified financial
institution.
Sources familiar with the situation have told Reuters columnist Matthew Goldstein that the financial institution is Goldman Sachs.
A Goldman representative declined to comment on Monday. A lawyer for Aleynikov, Sabrina Shroff, also declined to comment.
Authorities contend that Aleynikov improperly copied a financial institution's proprietary computer code and then uploaded it to a computer server in
Germany.
In court papers, an FBI agent said Aleynikov worked at an unspecified financial institution as a programer from May 2007 until June 5, when he left to
work for a new company focused on high-volume automated trading.
The case could shed light on the intricate trading systems developed by Goldman, and also raises questions about the security of Wall Street's
proprietary trading operations.
Aleynikov's wife, Elina, told Reuters on Sunday that her husband is innocent.
Speaking in a phone interview from the couple's New Jersey home, she said her husband worked hard for Goldman and has been a good citizen who has
lived in the United States for 19 years.
Aleynikov was being held at the Metropolitan Detention Center in Brooklyn as of Monday morning, according to the federal Bureau of Prisons website and
an officer at the jail.
It Is Time For The SEC/NYSE To Respond To The NASDAQ's SLP Clarification Requests
zerohedge.blogspot.com...
Now that Goldman and the NYSE's Supplemental Liquidity Provider program have finally attracted a critical mass of necessary (and hopefully
sufficient) public attention, Zero Hedge would like to readdress an overlooked complaint in which none other than the NASDAQ Stock Market LLC
vociferously blasts the NYSE, the SLP program, and some of the underlying assumptions. Zero Hedge has discussed this issue extensively in the past,
yet neither the SEC nor the NYSE (essentially, FINRA) seem to have ever addressed any of the NASDAQ's concerns. Zero Hedge believes the time has come
for the later two regulatory organizations to provide some feedback to NASDAQ's concerns.
To summarize the concerns highlighted previously, as part of the NYSE's public solicitation for comments when launching the SLP program, only the
NASDAQ provided its perspectives on this program. Keep in mind, one would have to be a very aggressive anti-conspiratorial vigilante to accuse the
NASDAQ of being an enterprise which sees patterns where others don't (or assume impossible).
The key objections from the Nasdaq are presented below, and the entire paper is provided for our readers' convenience (highlights and italics
added).
New York Stock Exchange: "We Screwed Up"
zerohedge.blogspot.com...
The story of Goldman's missing PT data has now entered the twilight zone. Matt Goldstein at Reuters reports that Goldman spokesman Michael Duvally
notified him that Goldman did in fact not only perform its usual NYSE SLP domination, but also reported of this, as it does every week:
“According to the data Goldman Sachs submitted, we are certain we were among the
top firms in terms of program trading volume for the week ending June 26.”
And guess who is taking the blame: our old friend Ray Pellecchia over at the NYSE:
“Due to an error on our part, the program trading report needs to be revised and we will have a revised list out later this week. It was a
system error on our part.”
Ray... just what system does the NYSE use that mysteriously drops the top Program Trading participant: is there a [if shares traded > 1 billion; AND;
NYSE vows to Zero Hedge infinite transparency, do "Report 0"] line somewhere in that particular system? Our debugging skills are a little rusty but
we would be happy to go through the code line by line and find all other comparable possible systemic errors. In fact, we would make it a crowdsourced
event and allow all our readers to participate in that endeavor. Imagine just how bug free the NYSE system would be as a result of this voluntary
venture. Of course, this would also prevent such dramas as 15 extra minutes of trading tacked on during the lowest volume day of the year, due to the
NYSE's inability to clear and process this abnormally low trade volume.
[edit on 7/6/2009 by Hx3_1963]
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reply posted on 6-7-2009 @ 03:39 PM by Vitchilo
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I know the economy is going to get worse... but this kind of report make me doubt myself...
U.S. ISM Service Industries Index Increased to 47
U.S. service industries from retailers to homebuilders contracted last month at the slowest pace in nine months, as measures of new orders and
employment improved.
The Institute for Supply Management’s index of non- manufacturing businesses, which make up almost 90 percent of the economy, rose to 47 -- higher
than forecast -- from 44 in May, according to data from the Tempe, Arizona-based group. Readings less than 50 signal contraction.
And there's more news of Obama maybe wanting a new stimulus... 
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reply posted on 6-7-2009 @ 04:03 PM by fromunclexcommunicate
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reply to post by Vitchilo
I sold my SKF short fund positions earlier in the day when I saw the Dow futures start to rally. We have seen a few weeks of stock market selloff
relieve some of the over bought conditions at least temporarily. Its always smart to take profits periodically. Where is GBM when even the bears are
taking a break?
[edit on 6-7-2009 by fromunclexcommunicate]
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reply posted on 6-7-2009 @ 04:49 PM by marg6043
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reply to post by Vitchilo
That is the new trend my friend US economy is now Dependant on stimulus to keep working.
That was predicted when the first bail out by bush was pushed last year.
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reply posted on 6-7-2009 @ 05:39 PM by Hx3_1963
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Why did this not surprise me? 
Senate turns aside new attempt to scrutinize Fed
www.reuters.com...
WASHINGTON (Reuters) - The U.S. Federal Reserve, facing growing pressure as it tries to heal the ailing economy, dodged a bullet on Monday when the
U.S. Senate cast aside a new effort to increase scrutiny of the central bank.
On procedural grounds, the Senate blocked a bid to permit the U.S. comptroller general, who heads the investigative arm of Congress known as the
Government Accountability Office, to audit the Federal Reserve system and issue a report. More at Link...
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reply posted on 6-7-2009 @ 05:55 PM by RetinoidReceptor
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www.forbes.com...
Meredith Whitney, the famous bear analyst, says that mortgage modifications will soar and this will impact good loans and bad loans sitting on the
balance sheets (shifting bad loans to good, healthy ones) and will positively impact short term earnings. She raised the short-medium term book value
for many financials higher except CitiGroup (which she is one of the first to have attacked).
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reply posted on 6-7-2009 @ 06:03 PM by warrenb
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reply to post by Hx3_1963
makes me want to wretch
the militias across the nation need to group as one and start kicking some corrupt government butts
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reply posted on 6-7-2009 @ 08:59 PM by fromunclexcommunicate
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reply to post by Hx3_1963
We have heard officials say that the Fed cooks their numbers different ways depending on what contingencies they choose. An audit would at least
force them to agree on which contingencies they were using to cook the numbers at the time of the audit. An audit would give us a metric that we
could follow over time.
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reply posted on 6-7-2009 @ 09:09 PM by Rockpuck
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reply to post by Hx3_1963
We need the names of the senators that turned aside the bill.
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reply posted on 7-7-2009 @ 01:51 AM by Dbriefed
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Originally posted by fromunclexcommunicate
We have been reading about how Goldman Sachs has been using high frequency arbitrage trading algorithms to beat the day traders. You just don't
stand a chance against that kind of machine in the short term.
This mornings 30 year treasury yield was up to 4.37% so it looks like at least the long term interest rates are starting to rise. The Fed will be
auctioning off 11 billion more 30 year bonds Thursday. If yields continue to rise that should put some pressure on the equities markets. The GS
arbitrage programs trigger off other investors reactions not future news so the GS computer would not be intuitive enough to dump stock early.
That software was designed by Goldman Sachs to bleed money from the general public, it used decimals before the general public converted
from fractions to decimals. They used bladeserver hardware on a Infiniband (low latency) network, later connected together on a 10Gig E network. The
hardware all talked through a pair of central I/O controllers and was function-built for this purpose, it's crap for anything else. Software on each
server tracks trades on a set of individual stocks, and a number of servers running in parallel are required to track trades on lots of stocks and
beat the general public. So while you're waiting for a certain number to sell, the software predicts this and sells a fraction lower to beat you.
The Goldman Sachs CTO left to start his own company to custom design the hardware for Goldman Sachs, and to try to sell this Million dollar
bladeserver to other companies, most of which wisely chose commodity hardware. The design is obsolete these days, other vendors have leapfrogged far
beyond them.
[edit on 7-7-2009 by Dbriefed]
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reply posted on 7-7-2009 @ 10:22 AM by pause4thought
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While the FTSE is flat near to close:
4196.77 -1.86 down 0.04%
...the Dow is currently looking a little more interesting:
8244.54 -80.33 down 0.96%
Source
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reply posted on 7-7-2009 @ 10:35 AM by Hx3_1963
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U.S. consumers fall behind on loans at record pace
www.reuters.com...
NEW YORK (Reuters) - Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt and home equity loans to all-time highs
in the first quarter as a record number of cash-strapped consumers fell behind on their bills.
Delinquencies on the value of all card debt soared to a record 6.60 percent from 5.52 percent in the fourth quarter as more cardholders relied on
plastic to meet day-to-day expenses, the American Bankers Association said.
Late payments on home equity loans rose to 3.52 percent from 3.03 percent, and on home equity lines of credit climbed to 1.89 percent from 1.46
percent.
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reply posted on 7-7-2009 @ 10:37 AM by marg6043
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reply to post by Rockpuck
You want the names? here is all you need to know,
Democrats who control the Senate blocked the South Carolina Republican's amendment on the grounds that it violated rules prohibiting
legislation attached to spending bills.
No a surprise at all.
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reply posted on 7-7-2009 @ 10:42 AM by marg6043
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More on the economy of bailouts.
US Should Plan 2nd Fiscal Stimulus: Govt Adviser
The United States should be planning for a possible second round of fiscal stimulus to further prop up the economy after the $787 billion rescue
package launched in February, an adviser to President Barack Obama said.
"We should be planning on a contingency basis for a second round of stimulus," Laura D'Andrea Tyson, a member of the panel advising President
Barack Obama on tackling the economic crisis, said on Tuesday.
www.cnbc.com...
Nothing but morons in charge of this nations government, that are so stupid that can not comprehend that if the first trillions have not work a
mere billions would not work either.
Are we all ready for more debt?.
Unbelievable.
The US is starting to look like those in the morgage bubble crash that were living beyond the means just to keep appearances
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reply posted on 7-7-2009 @ 10:46 AM by marg6043
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More dooms predictions,
For those that are seen what is coming our way this fall, you are all right, because recovery it's not.
Proprietary Trading May Cause October Crash: Investor,
Global stock markets could crash in October, as by then it will be clear that the economic recovery many people pinned their hopes on will not
materialize, the stimulus option will no longer be a viable one, and proprietary trading desks will decide to go short, economist and investor Enzio
von Pfeil, CEO of EconomicClock.com, told CNBC.
"The economic time has to worsen and so these green shoots will morph into black shoots very badly, culminating probably in an October crash," Pfeil
said.
This people most be keeping up with our thread here in ATS
"People will finally accept that the unemployment rates will have to keep rising, that productivity will have to keep falling," he added. That
in turn will make earnings expectations "fall through the floor."
www.cnbc.com...
Interesting, but didn't we told that already here.
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reply posted on 7-7-2009 @ 10:50 AM by Vitchilo
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Just watching CSPAN on the hearing about cap and trade in the senate...
They admitted it won't do a thing to stop climate change.... HAHAHAHHA
For more info on what is said...and was said...
Go on this thread.
[edit on 7-7-2009 by Vitchilo]
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reply posted on 7-7-2009 @ 10:57 AM by marg6043
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reply to post by Vitchilo
It's that a surprise? no is not, the only thing that this cap and traitors bill will do is enrich the pockets of the private interest sharks that are
all for it.
At the expenses of a dying nations economy and tax payer.
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reply posted on 7-7-2009 @ 12:18 PM by pause4thought
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Sorry to break the flow again, folks. Just so we can keep half an eye on the Dow at present:
8224.13 -100.74 down 1.21%
Source
The optimistic view might be that the Dow might form a mirror image of today's FTSE:
(4187.00 -7.91 down 0.19%)
Though something tells me life's not that simple.
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reply posted on 7-7-2009 @ 02:51 PM by burdman30ott6
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...and we're back to the end of April! Tip of the hat to those who, months ago, pointed out how closely the market was mirroring it's path during
the early months of the Great Depression. I'm believing you called that one correctly... real shame that you were right. 
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