RE: RE: RE: RE: Gold to test $1575 You're most welcome fellow posters! I've had a couple of spiked coffees in early celebration of my 17th wedding anniversary tomorrow, just in case the 21st doesn't turn out so well lol. Anyway with my buzz on I feel I must continue my rant on HFT because I firmly believe that it's legalized cheating and in fact destroying the confidence in higher risk markets such as the junior explorers. So here goes my ongoing HFT rant:
If one just glanced at KAM's chart, they would think that there's something very fundamentaly wrong here, but the same can be said for many of the juniors out there. So WTH gives? Sure the current downtrend can somewhat be blamed on a few factors that are out of a company's control, although one would think this current decline would be more warranted if it was due to the one or more of the many negatives that these explorers usually face within this sector. It's the name of the game, thus it's a gamble and we take it knowing that the high rate of risk, failure, and losses can be offset by a small possibility of a big payoff - still better odds than playing the lottery! Most mid-tier and majors could not take such risks and would probably go broke if left to discover their own deposits. It's the common investor who makes it possible for the producers to survive and unfortunately this sector's decline over the last year has many tickers and investors seeing red to the point where most will be left out to dry as the vultures circle overhead. IMO KAM along with others do not warrant such a depreciation to their sp. It makes no sense unless one understands HFT and how it's slowly destroying the markets and the common investor's confidence. These hyper fast trading computers are scalping the common investor by taking away the gains by playing both sides of the trade, be it positive or negative news with no regard for the longer term fundamentals. This imo is what will continue to drive the common investor away from this rigged game. Sure they mostly make a few cents a trade and their ideal scalping grounds are amongst companies that have a high number of outstanding shares along with a high sp and large daily volume such as Apple or Facebook. So how do they make worthwhile gains with little companies that have a significantly lower amount of outstanding shares with a lower sp and daily volume? Increase the frequency of trades by trading small lots of 100 to 500 shares all day without turning over a significant amount of the company's float. Anyone who has level 2 knows that those little trading lots are always pulled at the end of the day, HFT has created a mess out of the markets because they do not consider any long term fundamentals associated the the company they're scalping. They've created their edge to a magnitude that if you or I did the same we'd be going broke by paying $9.95 a trade for a $100 worth of stock that went up 2 bucks. We're at the mercy of the machines and their high frequency quote stuffing, queue jumping, naked short selling, and little trades of 100 lots that can either bring a stock up or down at the end of the day without rhyme or reason. Should the decline in KAM continue? I'll gladly buy in again since imo this is one of the better quality plays that could could garner a lot of attention as the graveyard continues to make reservations for the nearly dead plays out there. My plan for 2013 is to double my portfolio and then cash outta here to let the high speed machines play without me, for it's like losing Monopoly to the person who's the bankster - I hate playing with cheaters!
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Happy holidays all!