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<p>[QUOTE=&quot;mikem2000, post: 1804779, member: 30574&quot;]Really, First off HFT&#039;s objective is not to move markets, its purpose is to take advantage of small inneficiences, such as when MF&#039;s are forcedcto re-balace funds.&nbsp; The HFT&#039;s can be ahead of the curve and scrape up some pennies.&nbsp; Now, somtime things happen, the flash crash was a great example of this as the algo&#039;s did take over.&nbsp; As quickly as the</p><p>&nbsp;algo&#039;s took the market done, the savy traders saw what was going and jumped in to bring the market back to equilibrium.&nbsp; Net effect if the algo&#039;s = 0.&nbsp; This was the most extreme example of HFT we know of.</p><p><br /></p><p>Now similar things happen all the time on a smaller level, but very very quickly normal supply and demand take over and markets continue to work as always.&nbsp; As futher proof of the algo&#039;s net effect, is why are the markets trading&nbsp; at 16x earnings.&nbsp; This is a very realistic multiple in today economic climate.&nbsp; Why didn&#039;t the algo&#039;s take that all out of wack?</p><p><br /></p><p>The bottom line is HFT can and does move the markets for short periods of time.&nbsp; This is more of a side effect, then its pupose, and the aberrations are quickly corrected by fundamentals .&nbsp; Net effect of Algo&#039;s = 0[/QUOTE]</p><p><br /></p>

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