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<p>[QUOTE=&quot;Endeavor, post: 2275947, member: 60292&quot;]Over the weekend I was also wondering how the markets would react. Not at all surprised to see the markets absorb the news without much change from the norm. The markets in the last 10 years don&#039;t tend to react like they did previous to that. I believe there are several reasons for this.</p><p><br /></p><p>First and foremost an overwhelming majority of trades are now fully automated without any human input or regard for news. The algorithms in these high speed trading computers can pretty much handle any reaction. They have been optimized to such a high degree that they are self operating money-making machines. Much of the times they work to fill small gaps (as little as fractions of a cent) almost instantaneously (fractions of a second). Since the trades are so quick the volume has been increased dramatically. As a result of the higher trade volume, you no longer get the volatility there once use to be.</p><p><br /></p><p>The last several times we&#039;ve seen major volatility has been a result of erroneous human input (when updating the algorithm) or the algorithm itself having an error which finally gets executed.</p><p><br /></p><p>I&#039;m becoming more and more convinced that a nuclear war could break out and as long as none of these machines go offline (or humans don&#039;t interject and set the algos into some sort of crisis mode) the markets will remain stable as the world burns around them.</p><p><br /></p><p>Aside from that, people&#039;s attention span when it comes to news is shorter. Yesterday&#039;s big news story is nowhere to be found today. People in general are too busy on social media talking about what&#039;s happening NOW (while also posting selfies). So traditional brokerage firms are no longer pressed to make moves with their clientele&#039;s money like they used to be.[/QUOTE]</p><p><br /></p>

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