Tag Archives: twitter

Apple Pie – Bank Heist

bonnie and clydeI was wondering about insider trading today. Just a thought; a handful of people, Apple insiders, who are at this moment fully aware of what the market will do in 1 hr. Not just Apple. Lets say you’re in the know for the earnings which are due short(ly). Obviously you can’t trade Apple, but as a market moving stock could you just trade the index ahead of the announcement and be free-and-clear of any impropriety? A harmless quicky… I have no idea, but it’s a perfectly simple question. That question lead me to another market moving curiosity.

Did you see that ES flash crash after the fake AP tweet? I’m surprised it’s not bigger news. 260,000 ES contracts traded, $20 billion notational changed hands, and lots of traders got screwed as their stop losses got triggered. And that’s just the S&P futures market! Bonds, European Futures, Forex, VIX, Oil, everybody got hit for 3 minutes. Oh well… In those 3 minutes well over $1 trillion changed hands! Some serious commission…

Obviously most of those trades were algo driven, so maybe the weak link in High Frequency Trading (HFT) ¬†isn’t the speed, or buggy trading programs (Knight…) after all, but the social media resources HFT uses to drive it’s algos. Just sayin, if you’re a bad guy, why try to hack an exchange, a fund, a market moving enterprise, or bank? Hack a Twitter account.

They might just find the culprit by looking at who really, I mean really, profited from that tweet. We just experienced a modern-day bank heist. Hello good guys? Maybe you should be googling B099i3 & C1yd3

Have fun into Apple’s earnings, I personally can’t wait till it’s over.

Good point…

This is a quote from ZH, and it does get you thinking. (Highlights mine.)

Have you noticed that all the “hot” initial public offerings (IPOs) being hyped by Wall Street are all marketing companies? The big IPO that has everyone on the Street salivating is of course Facebook in 2012–the ultimate “social media” marketing machine. What’s striking about these heavily hyped Social Media companies is that they make nothing, and their service is either free (Facebook, Twitter, etc.) or a “free” marketing mechanism (Groupon). When was the last time a company went public in the U.S. that actually manufactured a good? When was the last time a “hot” company went public selling a service that had nothing to do with marketing and that actually performed a valuable function?