These programs were put in place and are allowed under the claim that they “improve liquidity.” Hogwash. They have turned the market into a rigged game where institutional orders (that’s you, Mr. and Mrs. Joe Public, when you buy or sell mutual funds!) are routinely screwed for the benefit of a few major international banks.

If you’re wondering how Goldman Sachs and other “big banks and hedge funds” made all their money this last quarter, now you know. And while you may think this latest market move was good for you, the fact of the matter is that you have been severely disadvantaged by these “high-frequency trading” programs and what’s worse, the distortion that is presented by these “ultra-fast” moves has a nasty habit of asserting itself in an ugly snapback a few days, weeks or months later - in the opposite direction.