RE:Computer Generated Transactions Question / Poll@ geoinvested - All 3 of the situations that you list occur and books are written about it.
To help understand when they occur, one has to be mindful of what the Fed and other central banks are doing and the different effects that monetary policy has on different types of stocks.
On top of the macro trends that are always happening there are the micro events that occur within companies.
As all the different macro trends and micro events play out, the algo traders or high frequency traders are in the market, basically skimming whatever they can.
But is it rigged to their advantage? I think so.
Seems to me that a level playing field would include mandatory reporting of short sales on a daily basis rather than only twice a month. You cann't tell me that computers cannot generate short sale data when every other type of data can be. That's only one example. There are others.